What is inherent vice?

Inherent vice refers to the natural characteristics or flaws in certain items that can lead to their deterioration or damage under normal conditions. It essentially denotes qualities that predispose an item to self-destruct or suffer degradation, regardless of external factors. This concept is particularly relevant in insurance as it helps define the limitations of coverage.

For example, some materials are naturally prone to deterioration over time, such as certain organic substances that might rot or corrode. Insurance policies often exclude coverage for damage resulting from inherent vice, meaning that if an item degrades due to its own natural properties, the insurer may not be liable for any resulting loss. This understanding is crucial in assessing risk and determining insurability for various types of property.