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.