Proof of Loss
The "Legal-Ease" Glossary
This is a formal statement that the policyholder sends to the insurance provider in the event of a loss. The document should…
- Describe the damaged property and its value.
- Outline the amount being claimed under the policy.
- Be signed and sworn to.
- Be submitted with documentation that supports the losses and costs.
The exact "look" of this document may vary, depending on your insurer's requirements and government regulations, but its purpose is the same: to provide detailed evidence of the damage and your loss.
It’s important to carefully describe and account for the damaged property and its value. The more specific the document, the better your insurance provider can sort through the claim.
Typically, proof of loss forms accompany a Property Insurance claim. For example, let’s say a flood destroys your commercial assets. Before you start filling out a proof of loss form, you need to be sure that…
- Your policy offers coverage for flood damage.
- Your damaged or lost items are covered by your policy.
Not all Property Insurance policies are created equally, and you’d be surprised how often small-business owners don’t know the exact nature of their coverage. If you have named-perils coverage, your Property policy will state outright which events it covers. If flood or water damage isn’t listed in the policy, it’s not covered. By contrast, an open-perils policy covers all events except for those explicitly listed in the policy.
Though you don’t file claims with your insurance agent, your agent can help you understand your policy. Oftentimes, your policy details what you need to do to file a claim with the insurance provider. Your agent can help you make sense of your responsibilities so you don’t inadvertently miss an important step or deadline.
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