What is All Risk Property Insurance

Property All Risk (PAR) insurance is a fire insurance product that provides coverage for all risks that may occur in the property (unnamed perils). In general, this PAR protection is intended for non-commercial properties such as schools, hospitals, and offices.

Even so, several companies provide all-risk policies for private homes. Usually used on homes that are still in the credit period to protect losses at the mortgage lending bank.

The main objects of PAR insurance and industry all risk (IAR) insurance:

PAR is intended to cover damage or loss to non-industrial buildings such as offices, residences, hospitals, and schools.
IAR is intended to guarantee industrial buildings such as factories, warehouses, shops, and malls or shopping centers.
Called providing a comprehensive or all-risk guarantee-risk turns out that all recall-risk risk property insurance still distinguishes between main guarantees and additional guarantees. The main guarantee is a guarantee that is given according to the premium paid.

Meanwhile, additional guarantees are guarantees that will be received if the customer increases the premium cost. The following are the main guarantees and additional guarantees in all-risk property insurance:

1. Ultimate guarantee
Fire, lightning, explosion, airplane crash, and smoke
Floods, storms, hurricanes, and water damage
Damage due to vehicles, demolition, and other coverage other than those excluded in the policy.

2. Additional warranty or extension
Riots, strikes, evil deeds, and riots
Terrorism and sabotage
Earthquakes, volcanic eruptions, and tsunamis.
Based on information from the Financial Services Authority (OJK), losses or risks that are not guaranteed in property all risk insurance include:

Machine damage due to use
Due to the nature of the object or the item itself
Nuclear, atomic reactions, radioactive and the like
War including civil war
Property in transit or located elsewhere
Unexplained disappearance or loss of unknown cause.
Malicious intentions of the insured persons or workers.
There are still many assumptions that property insurance is less important or that insurance is only intended for industrial scale.

Even though having property insurance is a form of protection to avoid financial expenses in the event of a major building or house repair due to unexpected risks, such as fire.


Provide benefits if participants experience losses on:

(Standard Policy Munich Re) including Riots, Strikes, Mass Damage & Civil Disobedience (RSMD 4.1B) and, Hurricanes, Hurricanes, Floods & Water Damage (TSFWD) and Landslides
Covers damage or loss caused by Earthquakes, Volcanic Eruptions, and Tsunamis as well as Fires and explosions after the Earthquake
Business Disruption caused by Riots, Strikes, Evil Acts, and Riots

Expansion of Benefits

Personal Accident
An accident in question is an incident or event that contains elements of violence, both physical and chemical, which comes suddenly, is not wanted or planned.
Natural Death
If the Participant dies not due to an accident.


War, terrorism, nuclear and radioactive
Delay, loss of market share, or business interruption
Intentional, dishonesty of employees
Mechanical and boiler failure
Wear, corrosion, the nature of the item itself
Pollution or contamination

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