What is an example of a peril that all-risk insurance would typically cover?

All-risk insurance, also known as open peril coverage, protects against a wide range of risks, covering any peril not specifically excluded in the policy. An earthquake is an example of a peril that is typically covered under all-risk insurance unless the policy explicitly lists it as an exclusion. This means that if you have an all-risk insurance policy, you are generally protected from the financial impact of earthquake damage unless that specific risk has been differentiated in your policy documents.

In contrast, flood damage is often excluded in many standard property insurance policies and would typically require a specific flood insurance policy. Intentional damage is not covered under any insurance policy, as insurers do not cover acts that the insured intentionally causes. Wear and tear is considered a maintenance issue, and standard insurance policies do not cover deterioration from regular use over time. Thus, the coverage of earthquakes under an all-risk policy exemplifies the broad scope of such insurance, reinforcing its value in protecting against unforeseen and potentially devastating events.