In which instance would an “all-risk” policy typically provide coverage?

An “all-risk” policy is designed to cover a wide range of risks, extending protection to all perils except for those specifically excluded in the policy terms. This means that unless the policy explicitly mentions certain exclusions, any loss or damage that occurs will typically be covered. This comprehensive coverage is what differentiates an all-risk policy from named perils policies, which only cover risks that are explicitly listed.

In contrast, the other choices focus on limitations or specific scenarios. For example, stating that coverage is limited to losses from natural disasters or those under a specific dollar amount does not align with the broad nature of an all-risk policy. Similarly, mentioning only losses due to negligence suggests a narrow focus on liability rather than the expansive coverage intended with all-risk provisions. Overall, the primary characteristic of an all-risk policy is its inclusivity, meaning it covers all risks unless they are specifically excluded.