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. Premium

    1. The total cost of an option. 2. The difference between the ...
  3. Actuarial Adjustment

    A revision made to reserves, premiums and other values based ...
  4. Actuary

    A professional statistician working for an insurance company. ...
  5. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
Related Articles
  1. Home & Auto

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  2. Insurance

    Homeowners Insurance Losers: States That Pay Most

    Which states charge you the most for homeowner's insurance? Hint: They're regularly featured on the Weather Channel.
  3. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  4. Insurance

    Which States Have the Cheapest Home Insurance?

    You can't choose where you live by its insurance rates. But if you did, these are the states to pick.
  5. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.
  6. Insurance

    Insurance Myths Involve Houses, Cars & Big Crashes

    Any confusion over what to buy or how to use a product can end up being costly, but when it comes to insurance, misunderstandings can cost thousands.
  7. Investing Basics

    Rental Property: Getting Rich Means Taking It Slowly

    I have two second cousins who serve in the military. We don't always talk much, though. The age gap can be a roadblock and those boys are always traveling
  8. Insurance

    How the Affordable Care Act Changed Insurance

    6 Ways Obamacare Impacts the Health Insurance Marketplace
  9. Insurance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  10. Insurance

    Why You Don’t Need Mortgage Protection Life Insurance

    Mortgage protection life insurance sounds great in concept - a guarantee that your mortgage will be paid off if you die unexpectedly. But take a hard look at what you get before choosing it.

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center