Legal Definitions - proof of loss

Definition: Proof of loss is a formal statement made by an insured person to an insurance company. It is required by the insurance company to determine whether the policy covers the loss or not.

Example: If a person's car is stolen, they will need to file a proof of loss with their insurance company. This statement will include details about the car, the theft, and any other relevant information. The insurance company will review the proof of loss to determine if the policy covers the loss and how much they will pay out.

Another example: If a person's house is damaged in a storm, they will need to file a proof of loss with their insurance company. This statement will include details about the damage, the cost of repairs, and any other relevant information. The insurance company will review the proof of loss to determine if the policy covers the damage and how much they will pay out.

The examples illustrate how proof of loss is a necessary step in the insurance claims process. It helps the insurance company determine the validity of the claim and the amount of compensation that should be paid out.