What does "all-risk" coverage mean?

"All-risk" coverage refers to a comprehensive type of insurance that offers protection against a broad range of risks. It is designed to cover any peril that is not explicitly excluded in the policy document. This means that a policyholder is protected against various types of losses or damages that can occur to their property, unless the policy specifically lists certain exclusions.

For instance, typical exclusions might include things like war, intentional acts, or specific types of wear and tear. The general nature of all-risk coverage provides policyholders with peace of mind, knowing they have a wide safety net, covering a multitude of scenarios in which their property could be harmed.

In contrast, the other choices constrict coverage either by defining it too narrowly or by focusing solely on certain types of risks. The limitation of coverage to specific perils or natural disasters does not align with the all-encompassing nature of all-risk policies, making it crucial to understand the breadth of coverage they provide. This distinction allows policyholders to make informed decisions based on their risk exposure and property protection needs.