How is a hazard defined in the context of property insurance?

In the context of property insurance, a hazard is defined as a source of danger that increases the likelihood of loss or damage occurring. Hazards can take various forms, such as physical hazards (e.g., a slippery floor or a faulty electrical system), moral hazards (e.g., dishonest behavior by the insured), or economic hazards (e.g., economic downturns affecting property value). Understanding hazards is crucial for insurers because they directly impact risk assessment and pricing of insurance policies. By identifying and evaluating hazards associated with a property, insurers can determine the level of risk they are willing to underwrite and the appropriate premiums to charge.