What is Proof of Loss in an Insurance Claim?

If your home has been damaged by a storm, fire, burst pipe, or other covered disaster, your insurer may mention “Proof of Loss.”

A Proof of Loss (POL) is a single document that could determine whether your claim moves forward or hits a wall.

Unfortunately, many policyholders don’t fully understand Proof of Loss until they’re in the middle of a stressful claim.

We’re here to help. Today, we’re explaining what a Proof of Loss is, why it matters, and how it can change your claim.

What is a Proof of Loss?

A Proof of Loss, or POL, is a sworn, signed statement explaining:

• The amount of money you’re claiming
• The details of the damage or loss
• Documentation to support your claim

Most insurance policies require a Proof of Loss statement.

The Proof of Loss is a legal document. When you sign the document, you’re formally stating what you lost, the value of what you lost, and the evidence supporting your loss.

Is Proof of Loss Required?

Most property insurance policies require a Proof of Loss statement – especially when dealing with a larger or more complex claim.

Check your insurance policy to determine any specific Proof of Loss requirements.

Some policies require the Proof of Loss:

• Before the insurer pays the final settlement
• Any time there’s a dispute about the value or scope of damage
• Within a specific length of time (say, 30, 60, or 90 days from the date of the loss)

In other words, some insurers use Proof of Loss as part of their normal insurance claim proceedings, while others use it only when there’s a dispute.

If you fail to submit your Proof of Loss within the required timeframe, it could lead to a denied, reduced, or delayed claim.

What’s Included in a Proof of Loss?

Different insurers have different Proof of Loss requirements.

Some of the items typically included on a Proof of Loss are:

• The date of the loss
• The cause of the loss
• Total claimed value of the loss (broken down by category)
• Description of damaged property or contents
• Policyholder information
• Insurance policy number
• Documentation to support the claim (estimates, receipts, photos, etc.)
• A signed and notarized statement certifying the information is truthful

Some insurers require you to complete separate Proof of Loss statements for dwelling coverage (the coverage that protects the structure of your home) and personal property coverage (the coverage protecting the items inside your home).

Why Proof of Loss is Important

Proof of Loss is more than just a boring legal document. It’s the foundation of your insurance claim. It could play a critical role in future disputes.

Some of the reasons Proof of Loss is important are:

• It explains exactly what you’re claiming and why
• It locks in your position if there’s a disagreement later
• It creates a documented foundation on which to negotiate with the insurer or dispute a payout
• It often starts the legal clock for the insurer’s required response
• It’s typically required in your insurance policy, often within a specific timeframe (say, 30 to 90 days) of the loss

How to Prepare a Strong Proof of Loss

A good Proof of Loss form has three main requirements:

Requirement #1: A Detailed Inventory: List every damaged item and structure in your home, including what it was, the value of the item, and how and where it was damaged.

Requirement #2: Documentation: A good Proof of Loss includes supporting documents like:

• Contractor repair estimates
• Receipts or invoices
• Appraisals for high-value items
• Photos or videos from before and after the damage
• Any other evidence proving you owned the items and proving the value of those items

Requirement #3: Clarity & Consistency: Check your Proof of Loss for consistency. If you’re claiming your fridge is worth $1,500, but a receipt shows you purchased it for $800, it weakens your case.

Mistakes to Avoid

A Proof of Loss is a legal document. A single mistake could jeopardize your claim – even if it’s an honest mistake.

Some of the mistakes to avoid when signing a Proof of Loss include:

Common Mistake #1: Late Submission: Insurers may require a Proof of Loss within a certain number of days (say, 30, 60, or 90 days) from the date of loss.

Common Mistake #2: Guessing on Values: Don’t just “guess” on the value of items. Use estimates, receipts, or third-party valuations to validate your values.

Common Mistake #3: Forgetting to Notarize: Most insurers require Proof of Loss forms to be notarized, which means you sign the document in front of a notary and the notary uses a notary seal to verify the signature. If your Proof of Loss is unsigned or doesn’t have a seal, it may not be valid.

Common Mistake #4: Undervaluing Your Claim: This is a common mistake. Many homeowners undervalue their claim. They don’t add everything to the Proof of Loss that they should, causing them to miss out on thousands of dollars of compensation. Once you sign the Proof of Loss, you may be locked into that amount – even if you discover more damage to your home.

How a Public Adjuster Can Help with Proof of Loss

Public adjusters have prepared thousands of Proof of Loss documents.

These documents can be intimidating, but an expert can help you maximize the value of your claim and ensure you receive fair treatment from your insurer.

Some of the ways in which a public adjuster helps with Proof of Loss documentation include:

• Preparing the Proof of Loss form
• Adding all required documentation and evidence to the Proof of Loss, including the specific items the insurer would like to see
• Accurately evaluating items to ensure you receive full value
• Avoiding traps that lead to delays, denials, or underpayments
• Representing your best interests in disputes and negotiations
• Spotting damage you or your insurer may have missed

Find a Public Adjuster

Final Word: Don’t Rush Proof of Loss – Get It Right

A Proof of Loss is an important legal document forming the foundation of your insurance claim.

It may sound like just another insurance form – one of many you’ll sign throughout the claims process. However, it’s important to take the time and get your Proof of Loss right.

For help with an insurance claim or Proof of Loss form, contact ClaimsMate today for a free, no-obligation consultation.

Stephanie Corona

Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.