What type of insurance policy covers all risks of loss that are not specifically excluded?

An open peril policy is a type of insurance that provides coverage for all risks of loss or damage to the insured property unless the peril is specifically excluded in the terms of the policy. This type of policy offers broader protection compared to a named peril policy, which only covers the risks explicitly listed in the policy.

The comprehensive nature of an open peril policy means that the policyholder benefits from a higher level of security, as it encompasses various unexpected events that are not anticipated or outlined as exclusions. The policy will typically specify the exclusions, making it clear what is not covered, which aids policyholders in understanding their coverage limits.

Furthermore, this type of policy is commonly found in various lines of insurance, such as homeowners or commercial property insurance, reinforcing its significance in protecting against a wide array of potential losses. Therefore, the correct answer reflects the comprehensive protection that an open peril policy provides in comparison to more limited coverage offered by other types of insurance policies.