What does all risk (open peril) coverage protect against?

All risk (open peril) coverage is designed to provide broad protection for policyholders. It covers all risks of loss or damage to property, except for those specifically excluded in the insurance policy. This means that if a peril is not mentioned as an exclusion, the coverage will apply, offering comprehensive protection for a variety of potential hazards.

For instance, this type of insurance might include damage from fire, theft, or natural disasters, as long as those risks are not explicitly stated as exceptions in the policy document. The focus on exclusions rather than inclusions sets this coverage apart, highlighting its extensive nature, which provides peace of mind to policyholders by ensuring a wide net of protection.

In contrast, the other options suggest limitations that are not inherent to open peril policies. Only specified risks denote a named peril approach, direct damages alone do not encapsulate the full scope of coverage, and liability pertains to different insurance categories unrelated to property damage caused by various risks. Therefore, the all-encompassing nature of open peril coverage accurately aligns with the description of protecting against all perils except those specifically excluded.