Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Content

Did You Know This Fact About Flood Damage?

Did You Know This Fact About Flood Damage?

Prevent major flood damage with this tip.

Who Does Survivorship Life Insurance Benefit?

Who Does Survivorship Life Insurance Benefit?

Later in life, the pros and cons of different life insurance policies are important considerations for married couples. It's vital to choose a life insurance policy that suits your unique circumstances.

How Swimming Pools Affect Your Homeowners Policy

How Swimming Pools Affect Your Homeowners Policy

When the weather warms up, it’s important to remain up to date when it comes to your insurance coverage—especially if you own a pool.