What would fuel tanks stored in a garage represent to an insurance company?

Fuel tanks stored in a garage represent a hazard to an insurance company because they pose a potential danger that can increase the likelihood of a loss occurring. Hazards are specific conditions or situations that increase the chance of an accident or injury, and in this case, the presence of fuel tanks can lead to fire risks or explosions, especially if not stored properly.

Insurance companies assess hazards to evaluate the potential for future claims. The existence of fuel tanks means that there is a greater risk of property damage or liability should an incident occur; thus, the company may consider additional safety measures or modifications to the policy based on this hazard.

The distinction lies in understanding that a hazard indicates a potential danger (like fuel tanks), whereas a risk refers to the chance of loss occurring. A loss would refer to an event that has already caused damage, and an asset typically denotes something of value rather than a risk factor. Therefore, identifying these fuel tanks as a hazard is crucial for insurance providers when assessing overall property risks and determining appropriate coverage.