What type of hazard is related to material, structural, or operational features that increase risk?

The correct answer is related to features that can be inherently linked to the material, structure, or operations of a property, which are categorized as physical hazards. Physical hazards are tangible aspects that can increase the likelihood of a loss occurring; for example, a building’s materials (like flammable roofing), its design (like inadequate exits), or operational features (like faulty wiring) can all contribute to a greater risk of loss or damage.

Understanding physical hazards is essential for risk assessment and management. Insurers often evaluate these hazards when underwriting a policy to determine the level of risk they will be taking on. The classification emphasizes how certain characteristics of a property can materially affect the chances of an insured event occurring, leading to claims.