What defines all-risk insurance?

All-risk insurance is defined by its broad coverage, which protects against any peril that is not specifically excluded in the policy. This type of insurance provides comprehensive protection, allowing policyholders to claim for a wide range of potential losses. Unlike named perils policies, which list specific risks covered, all-risk insurance covers everything except for what is explicitly mentioned as excluded.

This means that if a peril is not on the list of exclusions, it is generally covered, giving the policyholder a sense of security. For example, if a policy excludes earthquake damage but includes everything else, any damage caused by other unforeseen events would be claimable by the insured.

Other options do not reflect the nature of all-risk insurance. A policy that only covers named perils does not employ the same broad protection as all-risk coverage. Exclusively applying to property loss or being categorized under health insurance also misrepresents the scope of all-risk insurance, which can encompass various types of coverage beyond these limitations.