Which of the following is an example of a hazard in insurance?

In the context of insurance, a hazard refers to a condition or situation that increases the likelihood of a loss occurring. A poorly maintained building exemplifies this concept because it poses physical risks that can lead to various types of claims. For example, issues such as electrical hazards, structural weaknesses, and lack of proper fire safety measures can elevate the chances of accidents or damage, making it a clear example of a hazard.

On the other hand, a fire is the result of a hazard occurring rather than a hazard itself. A life insurance policy represents a form of financial protection and does not contribute to risk levels but rather addresses risks. A stock market investment is related to financial risk but is not a hazard in the context of insurance. Thus, the option featuring the poorly maintained building effectively highlights the necessary condition that can lead to an insurance claim due to increased risk.