Highly Protected Risk
What Does Highly Protected Risk Mean?
A highly protected risk is an insurance industry term that refers to a risk that has been controlled and managed through various protective measures. In other words, it does not mean the absence of risk; rather, the risk is still present but has been reduced or mitigated to some extent.
Insuranceopedia Explains Highly Protected Risk
Burglary is a risk for any homeowner. However, by implementing defensive measures such as installing smart surveillance devices, timers to regulate lighting, and deadbolt locks, the risk of burglary can be reclassified as a highly protected risk. Many insurers offer discounts when homeowners document upgrades like these, which is part of why smart-home devices can lower your home insurance costs.
Highly protected risks are less risky to insure, which is why coverage for them is typically offered at a lower premium. Even with these measures in place, homeowners still buy burglary insurance to cover the losses that protective devices cannot prevent.
