What is defined as a "hazard" in the context of insurance?

In the context of insurance, a "hazard" is defined as a condition or situation that increases the likelihood of a loss occurring. This can include physical conditions of the property, such as poorly maintained structures, as well as circumstances like being located in a flood zone or having inadequate security measures. Hazards do not cause loss directly but create environments where losses are more likely to happen, making the identification and assessment of hazards crucial for insurers when determining risk and setting policy premiums. Recognizing these conditions helps insurers manage risk effectively and allows policyholders to understand how various factors may impact their coverage.