Ace the 2025 Property and Casualty Challenge – Insure Your Success!

The example of accidental breakage of fragile items best illustrates "losses controllable by the insured" because the insured has the ability to take actions to prevent such losses from occurring. For instance, an insured can choose to handle fragile items with greater care, use protective packaging, or display them out of reach of children or pets. These behaviors and precautions are within the insured's control, making this scenario a clear representation of controllable losses.

In contrast, fire damage from a lightning strike and water damage from a natural flood both involve natural events that are generally uncontrollable by the insured. Vandalism causing property destruction is also largely dependent on external actions by third parties, which are not within the scope of control of the insured. Therefore, while the insured might be able to take some mitigating steps, the fundamental risks associated with these events are not controllable at the individual level like accidental breakage is.