- Something with a high potential to cause a loss, and due to high levels of risk is uninsurable. Damages resulting from theft or fire are examples of insurable perils, whereas flood damage on property located in a designated flood zone would be considered an uninsurable peril. Also known as an "uninsurable risk."
uninsurable risk, uninsurable
Related Terms and Acronyms
- Concurrent Causation — Definition,
- If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
- Hazard Insurance — Definition,
- Insurance that covers hazards that are considered risky enough not to be covered by a standard insurance policy.
- Peril — Definition,
- Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
- Property Insurance — Definition,
- Insurance that provides coverage for damages to property from a number of perils.
- Self Insurance — Definition,
- Setting aside money or assets for a potential future loss.