Loss

When a home or the items contained within it are damaged, a loss has occurred. A loss may also refer to a bodily injury sustained by someone other than the policyholder as a result of the insured’s actions. Homeowners can file claims against their house insurance policies when a loss occurs. The insurance company then investigates the claim to determine its legitimacy and decide if coverage applies. If the damage is deemed a covered loss, the insurer will work with an appraiser to figure out a fair settlement amount for the claim. Common house insurance losses include:

• Damage to the structure of a home (from fire, wind, hail, etc.)
• Loss or damage of personal belongings (e.g., homeowner’s computer is stolen)
• Liability claim (e.g., insurer must pay medical expenses after someone slips on the insured’s walkway and breaks his/her leg)

Covered Loss

Not all losses are covered by house insurance. Most homeowner’s insurance coverage contains specific exclusions that list items or events that the policy will not cover. In order to receive reimbursement for the damages, the homeowner must submit a claim for a covered loss to the insurer. For instance, standard house insurance policies do not cover flood damage, so this would not qualify as a covered loss. Before you submit your claim, consult your policy to determine the events and property it covers. The loss will not be covered if the item or event is contained in an exclusion clause in your policy.