From the practical point of view, although basic principles of fire insurance have developed during history, it may still be considered predominantly experimental. Phraseology ‘all risks’ is unclear, but difficulty of applying such method of coverage goes beyond linguistic framework. Vague and general wordings may produce misapprehension to policyholder regarding scope of cover and danger for insurer to cover damage and expenses he did not anticipate to bear and for which he did not charge proper premium. As a result, risk selection in this type of cover must be carried out by excluding all types of damage and expenses insurer does not want to cover. Furthermore, fire policies ‘all risks’, because it is concept of coverage of all risks and forms of property, for the purpose of scope of cover certainty it is necessary to make up a list of property excluded from this type of cover.
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