Loss

When a home or the items contained within it are damaged, a loss has occurred. It 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 company then investigates the claim to determine its legitimacy and decide if reimbursement applies. If the damage is deemed to be covered, the insurer will work with an appraiser to figure out a fair settlement amount for the claim. Common instances 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)

What is Covered?

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