What term describes an instance or behavior that increases the likelihood of a loss on insured items?

The term that accurately describes an instance or behavior that increases the likelihood of a loss on insured items is "hazard." A hazard is a condition or situation that makes a loss more probable. For example, hazardous conditions could include things like an unmaintained heating system that could increase the risk of fire, or having a swimming pool without safety measures that could increase the likelihood of accidents.

In the context of insurance, identifying hazards is crucial for underwriters in assessing risk levels associated with insuring a particular item or property. By recognizing and addressing hazards, insurance companies can take steps to mitigate risks, such as through risk management strategies or policy exclusions.

While other terms like "risk," "exposure," and "peril" are related to the context of insurance, they have different meanings. Risk generally refers to the possibility of loss itself, exposure is often used to describe the extent to which an insured item is subject to loss, and peril refers to the specific cause of a loss (like fire or theft). These distinctions help clarify the nature of insurance contracts and the assessment of claims.