Time for Notification of Loss
Definition - What does Time for Notification of Loss mean?
The time for notification of loss is a requirement in some insurance policies. An insurance contract could set a time limit for how long the insured has to report a loss to the insurance company after the loss occurs. If the insured waits beyond this deadline, they would forfeit their right to coverage, and their insurance company may not pay their claim.
Insuranceopedia explains Time for Notification of Loss
Most insurance policies do not set a specific time for notification of loss. They sometimes include vague language, such as the insured must report the loss “as soon as possible,” which is open-ended enough that a policyholder could potentially wait years and still have a right to have their claim paid.
At the same time, it is often in a policyholder’s best interests to file a claim as soon as they can after a loss. Doing so gives the insurance company the chance to review the incident while it’s still fresh so they can come up with the fairest assessment of damages. It also helps the insured avoid delays on their payment.