Direct answer
What does hazard mean?
A hazard is a condition that increases the chance or severity of loss.
Exam cue: Distinguish the condition creating risk from the event that directly causes the loss.
What does it look like in a question?
Example
Faulty wiring increases the chance of a fire.
Common exam trap
What should you not confuse it with?
A hazard is not the same as a peril such as fire or wind.
Related property insurance terms
Actual cash valueActual cash value is a loss-settlement measure commonly based on replacement cost less depreciation, subject to the policy language.DeductibleA deductible is the portion of a covered loss the insured must bear before the insurer's payment is calculated under the policy.ExclusionAn exclusion is a policy provision that removes specified property, causes of loss, people or situations from coverage.Liability coverageLiability coverage is insurance protection for covered claims that the insured is legally responsible for bodily injury or property damage to others.PerilA peril is an event or cause of loss, such as fire or theft, addressed by the insurance contract.PremiumA premium is the amount charged for insurance coverage for a stated period.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself.
- Real Estate Salesperson 77-Hour CurriculumNew York State Department of StateSupports: Exam scopeSection: Subject 12, Property Insurance
- Homeowners Insurance: Basic Coverage and Adding CoverageNew York State Department of Financial ServicesSupports: Consumer contextSection: Homeowners coverage, liability and deductibles
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Put the term back into its full subject.
A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.