Is all risk insurance really all risk? 5 must-knows

Wooden blocks spelling out the word ‘RISK’ alongside blocks labeled ‘YES,’ ‘NO,’ and a question mark.

Your wedding ring, those new shades, the smartwatch you saved up for… As awesome and/or sentimental as these items may be, they’re unfortunately just as attractive to thieves as they are to you.

All Risk Insurance covers items you take out of your house if they get damaged, stolen or lost. But what does “all-risk” really mean? Here are 5 of the most important things to know:

Must-Know #1: There Are Specified and Unspecified Items

Many people don’t know the difference between specified and unspecified items in their All-Risk Insurance. Do you?

Imagine you have a high-tech camera worth R10,000. If it gets lost or stolen, your insurer may not pay the full value unless you’ve specified it in your policy. Here’s why:

Unspecified All Risk Insurance

This covers general personal items you carry daily, like the contents of your handbag or some jewellery. You don’t have to list each item, but there’s usually a limit per item, based on a percentage of your total cover (more on this below).

Specified All Risk Insurance

This covers high-value items you list by name in your policy, along with their values—for example, your golf clubs or child’s car seat.

Insurance companies have different rules for what should be specified, but the general rule is: if it’s expensive, list it. Things like cell phones often need to be specified too.

Must-Know #2: There Are Exclusions

It’s called All Risk Insurance, but that doesn’t necessarily mean that wear and tear or electrical faults are covered. Double-check your policy for exclusions on your insurance.

Must-Know #3: There Are Policy Limits

Many policies have maximum claim amounts for individual items.

For instance, for unspecified goods like clothing or belongings, an insurer may pay out a maximum of 25% of the total insured value of each item. So, if you lost your R1,000 jacket on a night out, your insurer would pay out R250.

Must-Know #4: Claims Will Affect Your Premiums

Like with most insurance types, some insurers raise premiums after a claim or may offer no-claims bonuses. Before you make a claim, think carefully whether it will make more financial sense to replace the item out of pocket, instead.

Must-Know #5: You Can Pay Less on Home Contents Insurance with Hippo

Are you paying too much on your insurance?

You can check and find better options on Hippo today.

Click below and we’ll get you multiple Home Contents Insurance quotes – side-by-side for easy comparison.

If you find a deal you like, simply select it, and an agent from the insurer you chose will get in touch with you. They’ll also be able to help you add All Risk Insurance if you have an existing policy with them.

This article is for informational purposes only and does not constitute financial, legal, medical or insurance advice. Hippo is a comparison site helping you evaluate quotes from trusted South African insurers. Always review policy details before making changes. Quotes are risk profile dependent and subject to annual review. No fees are charged for using Hippo’s comparison service. HAS (Pty) Ltd and HCS (Pty) Ltd are authorised FSPs. Terms and conditions apply.