One of the most common questions clients often ask me is: “Is all risk insurance the same as property insurance?” The short answer is no, they are not the same, although they are closely related. Property insurance only covers events specifically listed in the policy while all risk insurance assumes everything is insured unless explicitly excluded.
In my over a decade of experience in both commercial and personal insurance, I’ve helped hundreds of clients understand the differences between these policies. I did this to help them to make more informed decisions.
Together, we’ll explore the key differences between all risk insurance and property insurance in Australia. In addition, we will look at their definitions, benefits, limitations, and which major Australian insurers offer each type. We’ll also address the most recent trends and regulatory developments affecting these coverages.
What Is Property Insurance?
Property insurance is a broad term used to describe a policy that provides protection against risks to physical assets. This includes damage caused by events like fire, theft, vandalism, flood, storm, and natural disasters.
In Australia, property insurance is most commonly purchased by:
- Homeowners
- Landlords
- Business owners (for commercial buildings and assets)
These policies typically cover the structure of a building and, in some cases, contents such as furniture, electronics, or machinery.
However, traditional property insurance usually operates on a named-perils basis. This means it only covers events specifically listed in the policy. If something happens that isn’t mentioned, you might not be covered.
What Is All Risk Insurance?
All risk insurance, on the other hand, offers a more comprehensive form of coverage. Rather than listing what is covered, all risk policies list what is not covered. In essence, it assumes everything is insured unless explicitly excluded.
This type of policy is ideal for businesses or individuals with high-value assets, expensive equipment, or operations that face multiple potential risks.
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Key Characteristics of All Risk Insurance:
- Covers accidental loss or damage from any cause not specifically excluded.
- Often used in construction, IT equipment, and portable assets insurance.
- Provides a wider safety net than named-perils property insurance.
5 Differences Between All Risk and Property Insurance in Tabular Form
| Feature | Property Insurance | All Risk Insurance |
| Coverage Type | Named perils only | All perils unless specifically excluded |
| Flexibility | Less flexible | Highly flexible |
| Premium Cost | Typically lower | Generally higher |
| Best Suited For | Homes, rental properties | High-value assets, mobile equipment |
| Claim Process | Proof of loss based on covered perils | Wider scope; fewer claim disputes |
While both types can protect physical assets, all risk insurance is broader in scope and offers fewer gaps in coverage.
Practical Examples of All Risk and Property Policies in Australia
Let’s say you own a photography business and your camera gets damaged during a shoot at the beach. If you only have standard property insurance, the policy might not cover it since the damage didn’t occur in your listed business premises.
However, if you have all risk insurance that covers portable equipment, you’d likely be covered, since the damage happened during a regular business activity and wasn’t excluded in the policy.
Top Insurance Companies Offering These Policies in Australia
Several leading insurers in Australia offer comprehensive property and all risk insurance. Here are a few worth mentioning:
| Insurance Provider | Type of Policy Offered | Notable Features |
| QBE Insurance | Both | Portable asset cover, all risk for tradies & SMEs |
| Allianz Australia | Property Insurance | Covers residential, commercial, and landlord property |
| CGU Insurance | All Risk & Property | Customisable for business assets, tools, and machinery |
| NRMA Insurance | Property Insurance (Home) | Fire, storm, and theft cover; optional extras available |
| AAMI | Home Property Insurance | Flexible contents add-ons |
Some insurers allow you to combine both policies or add “accidental damage” extensions to your property insurance to mimic an all risk structure. Of course, it is not always as broad.
Recent Regulatory Trends within the Insurance Sector
In 2024, the Australian Prudential Regulation Authority (APRA) introduced updated guidelines requiring insurance providers to improve transparency around exclusions in both property and all risk policies. This came after multiple complaints of post-natural disasters in Victoria and Queensland, where policyholders were confused about their coverage.
As a result, insurers are now required to use simpler, more accessible policy language and provide clearer Key Fact Sheets (KFS) when selling both types of insurance.
Should You Choose All Risk or Property Insurance?
Having seen the difference between all risk and property insurance, I’m sure you are wondering which one should you go for, right? Well, your choice of coverage depends entirely on your personal or business needs. Here are a few quick tips:
- Choose property insurance if you’re insuring a home or building and are happy with standard protections.
- Opt for all risk insurance if you need comprehensive coverage for high-value or mobile assets.
- Combine both if you run a business from home or want peace of mind for all potential risks.
Don’t forget to compare quotes and ask your insurer about exclusions, especially in all risk policies. Things like wear and tear, mechanical failure, and war-related losses are typically excluded.
Also Read:
- How to Hire the Best Business Insurance Broker or Agent in Australia
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- How Errors and Omissions Insurance (E&O) for Small Businesses Work
Conclusion
So, is all risk insurance the same as property insurance? No, but they are closely related. While property insurance protects your assets against listed risks, all risk insurance gives you a wider safety net by covering everything unless it’s explicitly ruled out.
Although all risk policies come at a premium, they offer added peace of mind. All risk insurance is particularly important to business owners, traders, and anyone with valuable, on-the-go equipment.
Before making a decision, always compare policies from reputable Australian insurance companies. Carefully read the fine print, and speak with a licensed insurance agent like myself. Your needs are unique, and your policy should reflect that.
If you’d like a free comparison of all risk vs. property insurance tailored to your situation, feel free to reach out. I’m always here to help Aussies and expats alike make smart insurance decisions.
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