What does all-risk coverage typically exclude?

All-risk coverage, often referred to as "open peril" or "all-risk" insurance, is designed to provide broad protection against a variety of risks unless specifically excluded. This means that while it covers many potential hazards, there are particular risks explicitly listed within the policy that are not covered. These exclusions can include specific types of damage, circumstances, or events that the insurer has deemed too high-risk or not insurable.

For example, it may explicitly exclude damage from acts of war, certain natural disasters like floods or earthquakes (depending on the policy), or losses due to negligence. Thus, recognizing that all-risk does not mean “all inclusive,” understanding which specific risks are mentioned as exclusions helps policyholders know the limitations of their coverage. This is why the correct answer identifies that specific risks listed in the policy are fundamental exclusions under all-risk coverage.

The other options suggest misunderstandings of the all-risk coverage concept. Some imply that all risks are covered without exceptions, which is not accurate since exclusions are a defining characteristic of this type of policy. Others misunderstand deductibles, which typically refer to the portion of a claim that the policyholder must pay out-of-pocket, rather than exclusions from coverage altogether.