What does Physical Hazard pertain to?

Physical hazard refers to the risk of loss that arises from the condition or use of a property. It encompasses factors such as structural problems, poor maintenance, location risks, and environmental concerns that can lead to potential damage or loss. These hazards can significantly affect the value and safety of a property and are often considered when evaluating insurance risk assessments.

In the context of property and casualty insurance, identifying and understanding physical hazards allow insurers to determine the extent of coverage necessary and to assess insurance premiums. Addressing physical hazards involves taking proactive steps to mitigate risks, ensuring that the property is maintained properly and any inherent dangers are managed effectively.