insurable risk


A risk that conforms to the following criteria: The possible loss must be plainly explained; the loss must be accidental and significant enough to be considered a hardship to the insured; the loss must also be part of a similar group of risks, so as to make the loss foreseeable; the loss must not occur at the same time as multiple others; and finally, the insurer must be able to compute the probability of a loss and a realistic cost for the insurance.

Use insurable risk in a sentence

It was an insurable risk and that meant that it was a risk worth taking and everything was going to be okay.

​ Was this Helpful? YES  NO 10 people found this helpful.

The insurance company balked at paying the claim because even though the property was an insurable risk, the police still hadn't ruled out arson.

​ Was this Helpful? YES  NO 7 people found this helpful.

A 20 year owner of a property slipped after getting out of his pool, due to a damaged block, and filed a claim with his insurance company because he believed it was an insurable risk.

​ Was this Helpful? YES  NO 3 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
insurable interest insurable title