What is a "proof of loss" in the context of insurance?

A "proof of loss" is a formal statement made by the insured detailing the loss, including the specifics of what happened, the items that were lost or damaged, and the amount being claimed. This document is critical in the claims process as it provides the insurance company with the necessary information to evaluate the claim. The proof of loss helps establish the validity of the claim and supports the insured's request for compensation or coverage under the policy.

The importance of this document lies in its role in resolving claims efficiently. By requiring the policyholder to submit a comprehensive account of the incident and losses, insurance companies can accurately assess the circumstances and determine their liability. Hence, the formal nature of the proof of loss ensures that claims are processed based on structured and clear information.