Unraveling the Meaning of “Insurance Loss Reported”
When and Why Are Losses Reported
Losses are reported when the policyholder experiences an incident causing property damage, bodily injury, business interruption, or other insured loss. Common examples include:
- A homeowner files a claim after storm damage
- An auto accident victim reports injuries and vehicle damage to their insurer
- A business owner notifies their provider of income lost due to a fire
The policyholder reports the loss in order to access benefits promised in their policy contract, like repairs, medical payments, replacement costs, and lost income reimbursement. Prompt loss notification starts the claims process so insurers can investigate, evaluate coverage based on the policy, and issue payments if the claim is approved.
The Loss Reporting Process
How Losses Get Reported
Insureds notify insurers by phone, online, or using the insurance company’s mobile app. Contact info and reporting procedures are provided with the policy documents. Policy type impacts how loss gets reported:
Home insurance: Call insurer or agent; report online or via app.
Auto insurance: Call insurer from accident scene if possible.
Business/commercial insurance: Notify designated risk management contact at one’s company first.
Details Provided in Loss Reports
The policyholder should provide as much documentation and data about the loss event as possible:
- Date, location, and nature of loss
- How damage/injuries occurred
- Police reports, pictures, videos, repair estimates
- Contact info for others involved (with auto claims)
Thorough details help insurers properly investigate claims and pay eligible losses. But it’s also key for consumers making loss reports to be truthful and accurate. Providing false information is illegal insurance fraud.
After Reporting: The Claims Process Begins
Once an insurance loss gets reported by the policyholder:
- Insurer opens a claim file and documents loss details
- Adjuster investigates loss and assess damages/injuries
- Insurer determines if loss cause and types meet policy definitions for coverage
If approved, claim payments get issued to the insured (minus deductibles)
Reporting starts this process to get claim benefits flowing to the affected policyholder. But the claim needs to meet policy eligibility standards for payments to be made.
Key Takeaways
Insurance loss reported refers to losses submitted by an insured to make the insurer aware of property damage, injury, or other covered loss events. Prompt and detailed loss reporting sets the important claims process in motion to get policyholders reimbursed for their financial impacts from unfortunate losses.