Clear-Space Clause

AAA

DEFINITION of 'Clear-Space Clause'

A clear-space clause is a clause in property insurance policies that stipulates that a certain insured property or asset group must be a specified distance from any surrounding properties. A clear-space clause is intended to limit liability by protecting surrounding structures and properties from potentially damaging or hazardous conditions.

INVESTOPEDIA EXPLAINS 'Clear-Space Clause'

A clear-space clause applies to certain property insurance policies and is intended to ensure that all assets or properties are not simultaneously destroyed. For example, a potentially damaging or hazardous factory must be kept a certain distance away from residential properties or other such factories to avoid larger-scale claims.

RELATED TERMS
  1. Water Damage Clause

    A clause in a property-casualty insurance contract. A water damage ...
  2. Actuary

    A professional statistician working for an insurance company. ...
  3. Premium

    1. The total cost of an option. 2. The difference between the ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  6. Actuarial Adjustment

    A revision made to reserves, premiums and other values based ...
Related Articles
  1. Home & Auto

    The Importance Of Property Insurance

  2. Insurance

    What are the tax implications of a life ...

  3. Insurance

    What is a collateral assignment of life ...

  4. Insurance

    What are the tax implications of a life ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center