Insurable describes a person, property, or risk that is eligible and suitable for insurance coverage. This means that an insurance company is willing to accept the associated risk and provide a policy against potential losses or damages. Key factors determining insurability include the probability of the event occurring, the potential severity of the loss, and the applicant's history and characteristics. The object must also conform to the insurance company's underwriting guidelines, which assess risk and set premiums. Essentially, something insurable represents a calculable risk that an insurance provider can reasonably manage and price. The assessment process often involves due diligence to evaluate the risk's exposure, likelihood, and severity, thereby ensuring the policy remains financially viable for the insurer.
Insureable meaning with examples
- The homeowner ensured their house was structurally sound and free of hazards, making it easily insurable. The insurance company's underwriter examined the property and determined it met the required standards, allowing for a comprehensive policy. The homeowner was relieved to find that their property was fully insurable at a reasonable rate. This protection brought peace of mind in case of unforeseen circumstances.
- A healthy individual with no pre-existing conditions is generally considered insurable for life insurance. Because this person has good health, a good credit score, and does not participate in high-risk activities, insuring them will provide good returns. The insurance company's risk assessment determined them to be a low-risk client, leading to favorable premium rates. This allowed for a seamless and fast application process, thus, insuring their future.
- The company took steps to improve its cybersecurity infrastructure to make its data and assets insurable against cyberattacks. By implementing firewalls, strong passwords, and data encryption, the business was considered insurable. They mitigated many of the risks, making it an easier sell for the insurer. The cybersecurity improvements made the organization insurable, attracting better rates, thus, securing business continuity.
- Older, less well-maintained vehicles may be more difficult to insure than newer ones. Because the car is aging, and lacks current safety features, it is difficult to ensure the car's safety. These vehicles do not always meet the criteria to be insurable due to the increased probability of accidents and associated high repair costs. Therefore, older car owners may see an increase in the premiums on their insurance policy.