A formal, sworn statement submitted by a policyholder to the insurance company documenting the details of a loss and the amount being claimed. It typically includes descriptions of damaged property, estimated values, and supporting documentation such as receipts or photographs.
Related Terms
Adjuster
An insurance professional who investigates and evaluates claims on behalf of an insurance company. The adjuster inspects damage, reviews documentation, interviews witnesses, and determines how much the insurer should pay for a covered loss.
Claim
A formal request made by a policyholder to an insurance company for payment or reimbursement for a covered loss or policy event. Filing a claim triggers the insurer to investigate the loss, assess damages, and determine what amount is payable under the policy.
Bad Faith
An insurer's unreasonable denial, delay, or underpayment of a legitimate insurance claim. Insurance companies have a legal duty to act in good faith and deal fairly with policyholders. If an insurer acts in bad faith, the policyholder may sue for damages beyond the original claim amount.