Pure risk

Exclusions

All policies, for renters or homeowners, will have items that the policy specifically does not cover.

Premium

Insurance company agrees to assume an identified risk for a fee.

Homeowner's policy

Is an insurance that protects property owners from the property and liability risks.

risk management

Is an organized strategy for controlling financial loss pure risks and insurable risks.

risk assumption

Is the process of accepting the consequences of risk.

deductible

Is the specified amount of a loss you must pay.

risk shifting

Risk transfer occurs when you buy insurance to cover financial losses caused by damaging events such as fire, theft, injury, or death.

Property risk

The chance of loss or harm to personal or real property.

comprehensive

The most complete homeowner's policy coverage.

Liability risk

chance of loss that may occur when your errors or actions result in injuries to others or damages to their property.

Pure risk

is a chance of loss with no chance for gain

attractive nuisance

is a dangerous place, condition, or object that is particularly attractive to children such as a swimming pool or trampoline.

Insurance

is a method for spreading individual risk among a large group of people to make losses more affordable for all.

Insurable risk

is a pure risk that is faced by a large number of people and for which the amount of the loss can be predicted.

insurable interest

is any financial interest in life or property such that, if the life or property were lost or armed, the insured would suffer financially

Renter's policy

is insurance that protects renters from the property and liability.

Liability coverage

is insurance to protect against claims for bodily injury to another person or damage to another person's property.

personal risk

is the chance of loss involving your income and standard of living.

risk avoidance

lowers the chance for loss by not doing the activity that could result in the loss.

risk reduction

lowers the chance of loss by taking measures to lessen the frequency or severity of losses that may occur.

Speculative risk

may result in either gain or loss

Economic risk

may result in gain or loss because of changing economic condition.

indemnification

means putting the policyholder back in the same financial condition he or she was in before the loss occurred.

Uninvited guest

presumed to have permission to be on your poverty, such as door to door solicitors or delivery people.

replacement value

the cost of replacing an item regardless of its actual cash value.