Define the concept of "fractional insurance".

The concept of "fractional insurance" refers specifically to coverage that applies to a designated portion of the total value of the property. This type of insurance allows for a more tailored approach, where the insured does not necessarily cover the entire value of the property but rather a specific fraction. This can be particularly useful for businesses or properties that may not require full coverage due to the nature of their operations or risk exposures, enabling policyholders to manage their insurance costs more effectively while still protecting against significant loss potential.

In contrast, options that refer to total coverage do not accurately represent fractional insurance, as the latter involves selective coverage rather than comprehensive protection. Monthly installments relate to payment structures rather than coverage itself, and while fractional insurance could theoretically cover liabilities, its definition focuses more directly on property values rather than liabilities. Thus, the correct choice captures the essence of fractional insurance by highlighting its specific application to a portion of the property's overall worth.