Which of the following is NOT considered an insurable risk?

The correct choice highlights a scenario that is not considered an insurable risk due to its nature. In the context of insurance, an insurable risk typically has certain characteristics: it must be unforeseen, measurable, non-catastrophic, and it must produce a financial loss that can be quantified.

The risk of one's home value decreasing due to a drop in market prices does not meet these criteria. Changes in market value are usually influenced by broader economic trends and can fluctuate widely based on supply and demand conditions. This risk is speculative rather than based on an unforeseen event or individual action; hence, it cannot be effectively insured against.

In contrast, unexpected medical expenses, liability from an auto accident, and property damage from a natural disaster represent insurable risks because they are generally specific events that can lead to predictable financial loss, are quantifiable, and the events themselves can be statistically defined, allowing insurers to evaluate and price the risk appropriately.