Proof Of Loss
What Does Proof Of Loss Mean?
Proof of loss refers to the legal document a policyholder submits to their insurance company to claim coverage for a loss. Once submitted, the document is reviewed, and the insurer determines whether to approve the claim and cover the loss. Based on this decision, the claimant (policyholder) will either receive compensation for the loss or have the claim denied.
Insuranceopedia Explains Proof Of Loss
An insurance contract specifies the amount of compensation the insured will receive after experiencing a loss. To claim this compensation, the policyholder must file a notarized proof of loss document. This document outlines the liability, specifies the amount of the loss, and includes necessary supporting materials. For example, a driver involved in an accident might submit a police report to document the incident and a repair shop estimate to verify the amount of loss. Additionally, it is crucial for the policyholder to understand the terms and conditions of filing a proof of loss, as certain steps must be followed, and the document is typically required to be submitted within a specific timeframe after the loss occurs.
