Insurable refers to the quality of being eligible for coverage under an insurance policy. An insurable risk is one that can be quantified and managed by an insurance company, ensuring it meets the conditions set for risk assessment and premium pricing. The concept typically involves risks associated with health, property, life, or liability, where the risks can be statistically evaluated and are not predetermined or inevitable.
Insurable meaning with examples
- In order to receive coverage, the property must be deemed insurable by the insurance agency. This means it needs to meet certain criteria such as being located in a safe area, with adequate security measures, and good maintenance records to mitigate the risk of loss or damage, making it a more secure investment for both the owner and the insurer.
- The homeowner was surprised to learn that her home, built in a high-flood zone, was not considered insurable due to the elevated risks. This realization prompted her to consult with a financial advisor to explore alternative options for protecting her assets, such as self-insurance or investing in additional flood defenses.
- When choosing an investment for retirement, it is crucial to consider insurable products like whole life insurance or annuities. These insurable financial instruments not only provide a safety net for unforeseen circumstances but also grow in value over time, ensuring a steady income during retirement years.
- The company specialized in commercial insurance, focusing on whether businesses present insurable risks. Assessing various industries, they determined which sectors showed insurable characteristics, helping clients understand their coverage options and the necessity of appropriate policy adjustments as businesses evolved.
- Before signing up for a new health plan, individuals should check if their specific health issues are recognized as insurable by the provider. Understanding which conditions might qualify for coverage not only aids in selecting the best plan but also ensures proper care is available when needed.