Clear-Space Clause

Definition

• A clause in some property insurance policies that stipulates the minimum specified distance an insured property must be from surrounding properties. The clear-space clause exists to reduce liabilities for the insurer by distancing the insured property, or properties near the insured property, from potential hazards such as fire.

Synonyms
fine print, margin, open-space, buffer clause

Related Terms and Acronyms

• Hazard — Definition,
  • Anything that poses a potential risk of injury or damage.
• Hazard Insurance — Definition,
  • Insurance that covers hazards that are considered risky enough not to be covered by a standard insurance policy.