In terms of insurance risks, why are combustible materials considered significant?

Combustible materials are considered significant in terms of insurance risks primarily because they pose a greater fire hazard. When these materials are present, the likelihood of a fire occurring and its potential severity increases significantly. This elevated risk leads to higher insurance premiums and stricter building codes or regulations.

The presence of combustible materials can accelerate the spread of fire and create dangerous conditions, impacting not just the insured property, but also surrounding properties and public safety. Insurance policies often take this into account, assessing the risks associated with different types of materials used in construction and their potential to contribute to fire damage. This is why understanding the role of combustible materials is crucial for effective risk management in property and casualty insurance.