What type of coverage does the term 'all-risk' imply in property insurance?

The term 'all-risk' in property insurance indicates a comprehensive coverage approach that encompasses a wide range of potential damages or losses that could affect the insured property. This type of coverage is designed to cover virtually all risks of physical loss or damage unless specifically excluded in the policy terms.

This means that unless there are particular exclusions outlined in the policy, almost any event that causes harm to the property would be covered. Such a broad scope of coverage distinguishes 'all-risk' from policies that only cover specific perils, which would only protect against listed hazards. It also contrasts with limited coverage like those that might only address fire and theft or exclude various natural disasters.

Understanding this concept is crucial as it provides insight into how risk is managed in property insurance, giving policyholders a more extensive safety net compared to more narrowly defined policies.