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

A Guide to Insuring Valuables In Your Home

A Guide to Insuring Valuables In Your Home

Your homeowners policy may not cover certain types of valuables. Here's what you can do to stay covered.

A New Way to Look at Your Bucket List

A New Way to Look at Your Bucket List

Bucket lists don’t have to be for tomorrow.

What Is My Current Cash Flow?

What Is My Current Cash Flow?

Assess whether you are running “in the black” or “in the red” each month.