Personal Insurance – Property Exposure

Loss exposure

A loss exposure is anything that may cause a loss. This is an asset or condition exposed to a situation or occurrence that results in a financial loss to the primary party. There are three elements to loss exposures:

  • Asset at risk of loss
  • Cause of loss (peril)
  • Cost of loss


Property loss exposure

Property loss exposure is the possibility of a financial loss caused by damage to property. The party must have a financial interest in the property to suffer a property loss. Financial interest means the party with would suffer a financial loss if the property suffered a loss.

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