Loss Valuation

Loss valuation is the process of determining the financial worth of an insurance claim for a damaged, lost, or stolen item or property. It calculates how much money should be paid out to compensate for the loss, considering factors like the item's replacement cost, depreciation, and policy terms. Essentially, it ensures that the insurance payout fairly reflects the value of the loss, helping both the insurer and the policyholder understand the appropriate amount of compensation.