impaired claims

Impaired claims refer to insurance claims where the insured property or the financial interest involved has suffered damage, loss, or a reduction in value that affects the claim’s outcome. This impairment can be due to factors like deterioration, damage, or changes that decrease the asset’s worth, making it less valuable or less useful. Essentially, the insurer assesses the extent of the damage or impairment to determine how much compensation is appropriate, ensuring the payout reflects the actual diminished value or loss experienced by the policyholder.