Insurance

What is Risk?

Risk

[risk]

noun

1.

Risk is the likelihood that an insured event occurs, that is, an event in which the insurance company is likely to pay out a Claim. Insurance companies use Risk when determining whether to insure a home, car, or individual, and when setting Premiums. People with lower Risk generally pay lower rates, and people with higher Risk generally pay higher rates.

Have A Question About This Topic?

Thank you! Oops!

Related Content

Protecting Your Home Against Flood Loss

Protecting Your Home Against Flood Loss

Protect yourself against the damage that your homeowners policy doesn’t cover.

The Basics of Medicare

The Basics of Medicare

Learn all about Medicare basics in this informative and insightful article.

Insurance When You Marry After 40

Insurance When You Marry After 40

If you’re getting married for the first time or remarrying after age 40, life insurance is a must for you and your spouse. Read on and learn about why life insurance is a crucial part of your estate strategy.