Clear-Space Clause

A A A

DEFINITION

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

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 clause states ...
  2. Actuary

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

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

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

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

    A revision made to reserves, premiums and other values based on a company's ...
  7. Reinsurer

    A company that provides financial protection to insurance companies.
  8. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s ...
  9. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose deaths were ...
  10. Level Death Benefit

    A life insurance payout that is the same whether the insured person dies shortly ...
Related Articles
  1. The Importance Of Property Insurance
    Home & Auto

    The Importance Of Property Insurance

  2. 6 Good Reasons To Get Renter's Insurance
    Insurance

    6 Good Reasons To Get Renter's Insurance

  3. What's the difference between Social ...
    Retirement

    What's the difference between Social ...

  4. On average, what can I expect my private ...
    Home & Auto

    On average, what can I expect my private ...

  5. Why do I need to pay private mortgage ...
    Home & Auto

    Why do I need to pay private mortgage ...

  6. Want To Sell Life Insurance? Read This ...
    Entrepreneurship

    Want To Sell Life Insurance? Read This ...

  7. How To Compare Home Insurance Companies
    Insurance

    How To Compare Home Insurance Companies

  8. Find The Best Home Insurance Quotes
    Home & Auto

    Find The Best Home Insurance Quotes

  9. How Are Home Insurance Rates Determined?
    Insurance

    How Are Home Insurance Rates Determined?

  10. Could Your Job Make You Uninsurable?
    Insurance

    Could Your Job Make You Uninsurable?

comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center