Which factor is NOT considered a Physical Hazard?

Physical hazards refer to tangible conditions or attributes associated with property that increase the likelihood of a loss. Common examples include visible structural damages, environmental conditions like flooding or high winds, and material flaws such as cracks in a foundation or weaknesses in building materials. These factors can directly contribute to the risk of physical damage or loss occurring.

The financial irresponsibility of the insured, on the other hand, is categorized as a moral hazard or behavioral risk rather than a physical hazard. It involves the individual's behavior and attitudes towards risk management, which, while important in assessing overall risk, does not pertain to the physical characteristics of a property or environment. This distinction is crucial in understanding the different categories of hazards in insurance, demonstrating that physical hazards are specifically linked to the material and environmental aspects of the insured property, rather than the behavior or financial state of the policyholder.