Even though the Standard Fire Policy is a named peril contract, under which of the following circumstances would the policy provide "all risk of loss" coverage on insured property?

The correct answer highlights an important aspect of the Standard Fire Policy regarding coverage in specific situations. The Standard Fire Policy is primarily a named peril contract, meaning it only covers losses explicitly stated in the policy. However, one exception to this limitation occurs when there is a need to remove insured property due to the imminent threat of loss from a peril covered by the policy.

In such instances, if property must be removed to protect it from a peril insured against—such as fire, lightning, explosion, or similar risks—the policy extends to provide "all risk of loss" coverage during the process of removal. This means that while the property is in transit or temporarily relocated to prevent loss, it becomes safeguarded against various unforeseen risks that might not be covered under the normal clauses of a named peril contract, thus offering broader protection during this critical time. This approach is particularly important because it encourages policyholders to act decisively to mitigate potential damage without the fear of losing coverage while doing so.

Understanding this provision helps clarify the extent of coverage offered under the Standard Fire Policy and reinforces the importance of the removal clause in property insurance contracts.