What kind of policy usually requires a higher premium?

An all-risk policy is designed to provide coverage for a broad array of risks, meaning that it covers any loss unless specifically excluded in the policy terms. This comprehensive nature of coverage means that the insurance company assumes greater risk compared to more restricted policies, which is why it typically comes with a higher premium.

In contrast, a named peril policy only covers losses specifically listed within the policy, limiting the insurer’s exposure and typically resulting in a lower premium. Life insurance policies generally have their own unique pricing structures based on various factors such as age, health, and coverage amount, but they don't directly compare to property insurance policies when assessing risk coverage. Standard homeowners insurance tends to cover various risks as well but does not usually encompass the same level of all-encompassing protection that an all-risk policy offers, making its premiums comparatively lower.

Overall, the all-risk policy carries a higher premium due to its extensive coverage, aligning the financial risk for the insurer with the cost to the policyholder.