What is meant by inherent vice in insurance?

Inherent vice refers to the natural characteristics or qualities of an item that make it susceptible to damage or deterioration over time without any external influence. This concept is particularly relevant in insurance because it highlights the limitations of coverage when a loss occurs due to these intrinsic qualities.

The choice that indicates a condition leading to the property’s self-destruction captures the essence of inherent vice. For example, certain types of perishable goods, like fruits or vegetables, have a limited shelf life due to their organic composition. Essentially, they may spoil regardless of how carefully they are stored. In insurance policies, inherent vice is a common exclusion, meaning that losses arising purely from such natural qualities are not covered by the insurer.

Other options discuss positive aspects of property, such as value increase or durability, which are not related to how an item might deteriorate on its own due to its inherent characteristics. External factors impacting property do not address the intrinsic nature of the item itself; rather, they involve outside influences that cause damage, which is a separate consideration in insurance contexts.