Definition: Risk associated with hazards that can occur without a broader change in the economy, such as fire, theft, or accidental damage. Such risks are often addressed through insurance and loss prevention.
Example
An owner evaluates fire exposure and buys a policy that covers specified fire losses subject to its terms.
Keep the distinction clear
Static does not mean every loss is insured. Exclusions, deductibles, limits, and the actual cause of loss determine coverage.
Related terms
Dynamic Risk · Risk · Hazard Insurance
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): STAT-ik RISK (capitals show stress)
Pronunciation reference: Merriam-Webster
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