Which is NOT a factor in determining a 'Hazard'?

A hazard in the context of insurance refers to a condition that increases the likelihood or severity of a loss. Therefore, when determining hazards, various factors are taken into account based on their influence on risk.

Proximity to fire stations is relevant because the closer a property is to emergency services, the quicker help can arrive in the event of a fire, which can mitigate damage. The history of claims provides insight into how often and how severely a property has suffered losses, which directly relates to future risk assessments. The condition of the property is critical as it reflects how well-maintained a property is, affecting its vulnerability to risks such as fire, natural disasters, or theft.

However, the type of coverage held does not affect the assessment of hazards directly. While it is important in determining what risks are insured, coverage types do not inherently influence the characteristics or risks associated with the property itself. Therefore, it is not considered a factor in determining hazards. This distinction highlights why the type of coverage is not related to the inherent risks present in a property.