What is all risks cover?

One moment your laptop is on the passenger seat. The next, it is not. Your phone slips out of your pocket during a busy commute. Your tools disappear between jobs. In an instant, everyday items turn into unexpected costs.

This is the reality of carrying things of value with you. It is also why All Risks insurance matters more than most people realise.

What is all risks insurance?

All Risks insurance is a specialised type of cover designed for possessions that could be lost, stolen, or damaged both inside and outside your home. This cover is for all causes of loss except those specifically excluded and differs from policies that specifically name the events against which you are insured.

This insurance covers the loss of or damage to items you move around with daily: Your cell phone, your laptop, your watch, your jewellery, your tools, your bike, your sports equipment or camera. It is worth noting that many South African insurers now offer dedicated cell phone insurance policies with terms that include immediate replacement and repair of screen damage.

Unlike standard household insurance, which is limited to items at a fixed location, All Risks insurance covers your belongings wherever you go. Your cover may even extend beyond South Africa but most South African policies limit worldwide cover to a set period per trip –commonly 30 or 60 days.

What is the difference between specified and unspecified all risks insurance?

All Risks insurance is generally divided into two categories. Knowing the difference helps you structure your cover properly.

Specified all risks insurance

This applies to individual items that are listed separately in your insurance schedule, each with its own value. These are usually high-value items such as laptops, cell phones, cameras, bicycles, and professional equipment.

Because each item is specified, the insurer knows exactly what is covered and for how much. This often leads to more precise and reliable claims outcomes.

Unspecified all risks insurance

This covers everyday personal belongings that you carry with you, such as sunglasses, wallets, handbags, keys, prescription glasses and small electronics. Instead of listing each item individually, this type of cover provides a set limit per item, as outlined in your policy schedule.

It is a more flexible option, but it comes with limits that you need to understand to avoid being underinsured.

What may not be covered by all risks insurance?

All Risks insurance may sound comprehensive, but there are boundaries. Not every loss or type of damage will be covered.

Losses of items out of unattended vehicles may be subject to exclusions or sub-limits, and this is the single biggest cause of declined All Risks claims in South Africa. Most policies either exclude theft from unattended vehicles entirely or apply specific conditions, for example, the item must be in a locked boot or there must be forced entry.

Items lost due to negligence or unattended property in high-risk situations may also be excluded, depending on your policy wording.

Wear and tear, gradual decline, or certain mechanical or electrical faults often fall outside the scope of cover.

Limits are another reality check. For items that are not individually specified, insurers usually apply a cap on what they will pay per item. These limits may be a fixed rand amount, for example R5 000 per item, or a percentage of the unspecified sum insured. So, imagine your unspecified sum insured is R10 000 and there is a limit per item of 30 percent of that sum or R3 000. If you lose sunglasses valued at R5 000, you will only be able to claim R3 000.

It is also worth noting that the value of your insured items matters. Most policies operate on either replacement value or depreciated value, and the difference can change your payout significantly if you are not aware of how your items are assessed. Also, many policies have a “pair and sets” clause, which means that if you lose one earring from a pair, you may only receive half the value rather than the cost to replace the pair.

Why you shouldn’t claim for everything on all risks insurance

Every claim you make on your insurance policy has a ripple effect. A claim can influence your future premiums or impact any no-claims bonus you have built up over time. At times, it may be better not to claim at all, especially for smaller losses.

You should also remember that most policies have an excess, or deductible. This is the amount you must contribute before the insurer pays out. A lower premium may come with a higher excess, which can significantly affect what you can get paid at claim stage.

How to submit an all risks claim

If you have suffered a loss or damage to your insured items, notify your broker or insurer as soon as the incident occurs so the process can start without delay. You will usually need to provide supporting documents such as proof of ownership, receipts, photographs, and in the case of theft, a police case number. Many insurers also offer online platforms or mobile apps that allow you to submit documents and track the progress of your claim digitally.

In some cases, insurers may also request serial numbers or proof of recent use, especially for electronics or tools, to validate ownership and reduce fraud risk.

Your broker can help manage the process, ensuring the insurer receives the correct information and that nothing is missed. Speed and honesty are critical. The sooner you report the incident and provide accurate details, the smoother and faster the claim is likely to be resolved.

Be practical about all risks insurance

The purpose of All Risks cover is not to insure everything you own. It is about protecting the items that move with you and matter most to your daily life or livelihood.

When structured correctly, it protects your income and reduces the financial impact of the unexpected losses or damage.

It also works best when reviewed regularly. As your lifestyle changes, so should your cover. New devices, upgraded equipment or travel patterns all influence whether your policy still reflects your reality.

Another way you can be practical about your cover and the cost of it is to look after your possessions and manage their exposure to risk. Simple steps like keeping devices locked out of sight in vehicles, recording serial numbers, and maintaining updated valuations can reduce both the likelihood of loss and the friction of claims. In some cases, insurers may even consider these factors when assessing risk and premiums, making responsible ownership a quiet but powerful advantage.

This article was written by financial journalist Thekiso Anthony Lefifi and reviewed by Desireé Groenewald, a senior technical specialist for product at PSG Insure