Clear-Space Clause

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.

BREAKING DOWN '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. Abandonment Clause

    A clause in a property insurance contract that, under certain ...
  2. Work And Materials Clause

    A provision in many property insurance policies that allows the ...
  3. Contingency Clause

    A contract provision that requires a specific event or action ...
  4. Alienation Clause

    A clause in a mortgage contract that requires full payment of ...
  5. Water Damage Clause

    A clause in a property-casualty insurance contract. A water damage ...
  6. Cancellation Provision Clause

    It is a provision in an insurance policy that permits an insurer ...
Related Articles
  1. Personal Finance

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  2. Managing Wealth

    Estate Planning: Other Types Of Wills

    by Cathy Pareto, CFP®, AIF® (Contact Author | Biography) In addition to the traditional types of wills discussed in Part 2, there are other types of wills, which include the following: ...
  3. Personal Finance

    The Complete Guide To Becoming A Landlord: Hiring A Property Manager

    A property manager can perform such duties as marketing your rental property, selecting tenants, maintaining the property, creating budgets and collecting rent. You may consider hiring a property ...
  4. Personal Finance

    Your Property Tax Assessment: What Does It Mean?

    The amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
  5. Markets

    Corporate Bonds and the Importance of Covenants

    Any type of investor, private or institutional, should be acquainted with the significance of covenants in corporate bond agreements.
  6. Trading

    Use Real Estate To Put Off Tax Bills

    Find out how you can build wealth and reduce your taxes.
  7. Investing

    How Property Rights Affect Economies

    Property rights are laws governments create that enable investors to control, benefit from, and transfer property.
  8. Personal Finance

    Contingency Clauses In Home Purchases Contracts

    Real estate contracts often contain contingency clauses, which are conditions or actions that must be met for a contract to be binding.
  9. Personal Finance

    What You Should Know About Real Estate Valuation

    Anyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
  10. Personal Finance

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
RELATED FAQS
  1. What is a "force majeure"?

    A force majeure is derived from the French term meaning "greater force" and refers to any natural and unavoidable catastrophe. ... Read Answer >>
  2. Can you ask your landlord to remove a waiver of subrogation clause from your lease?

    Learn how to remove a waiver of subrogation clause from a lease. Find out also why you might not want to strike this clause ... Read Answer >>
  3. Can you sue an insurance company for not paying a claim over a waiver of subrogation ...

    Learn more about insurance and why waivers of subrogation are common with property insurance. Find out about liability risk ... Read Answer >>
  4. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  5. How are capitalism and private property related?

    Read about the relationship between capitalism and private property rights, and learn why voluntary trade would collapse ... Read Answer >>
  6. What is the difference between real estate and real property?

    Understand how real estate is legally different from real property and the implications of that difference for each property ... Read Answer >>
Trading Center