What is a key characteristic of an open perils policy?

An open perils policy, also known as an all-risk policy, is designed to provide coverage for all risks of loss except those that are expressly excluded in the policy text. This means that unless a specific peril or risk is mentioned as an exclusion, the policy will cover the damage or loss related to that risk. This characteristic makes open perils policies more comprehensive compared to named perils policies, which only cover risks specifically listed within the policy.

The other options reflect different types of coverage. A policy that covers named perils only is the opposite of an open perils policy, as it provides protection only against specifically listed risks. Contingent coverage refers to protection that is based on certain conditions or events occurring, which is not a defining feature of an open perils policy. Lastly, limiting coverage to specific structures does not align with the broad nature of open perils, which is intended to cover a wide range of potential risks to various properties or structures. Thus, the defining characteristic of an open perils policy is its extensive coverage for all risks of loss, barring only specifically excluded items.