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How Do Insurance Companies Define Physical Loss?


Loss Recovery Services - AAG - New York, NY

Getting an insurance plan for your property can be easy. You can choose from multiple coverage options to get the best insurance claims when needed. However, the problem arises when you file a claim. Insurance companies use different ways to minimize the claimed amounts and put the policyholder in trouble. We have all the details you need if you wonder how insurance companies define physical losses.


Defining Direct Physical Losses

Insurance companies (typically) do not have fixed criteria to define direct physical losses. Property owners must prove property damage through multiple pieces of evidence to claim insurance amounts. Consequently, property owners bear the disadvantage and end up getting minimal claims. Some companies define a property’s structure change as a legit factor for direct private or commercial claims. However, structural changes are not the only factors that make a property unfit for use.


This is where public adjusters come to the policyholder’s rescue. They offer advocacy to prepare documentation and follow procedures to get the top dollar for your claims. Insurance adjusters know the technicalities to challenge an insurance company when determining the physical loss.


A Generic Definition to Remember

Regardless of how insurance companies define physical losses, Port Authority v. Affiliated FM Ins Co. defined clear criteria to determine physical losses in a property. According to the definition, a distinct, demonstrable, and physical property alteration declares it physically unfit for use. Policyholders can file claims based on this definition.


A common problem many property owners face is tackling claim rejections when underlying damages persist. Sometimes, property damages require a technical inspection to identify problems. Such issues are not visible to the naked eye. Insurance adjusters use different methods to highlight such losses and get significant claims.


The Role of a Public Adjuster

Public adjusters are responsible for representing policyholders when filing for insurance loss recovery. They are experienced professionals who know the ins and outs of insurance claims when facing property impacts. If you are unsure how to pursue your case, hiring a public adjuster can put a stop to your worries.


They are insurance claim experts who tackle companies using legal arguments. Moreover, they support you in creating helpful documentation to validate your case.


Insurance Claims in Manhattan, NY

The above details highlight the definition of direct physical losses when claiming insurance. If you need help in getting the maximum claim, Affiliate Adjustment Group can help you. Contact us today to discuss your case.

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