Property claims glossary
What is first notice of loss (FNOL)?
First notice of loss (FNOL) is the first report to the carrier that a loss has happened, usually from the family, their agent or a contractor. It opens the claim file and starts the state timelines for acknowledging and handling the claim.
Worked example · fictitious claim
A family reports hail damage on April 3, and the carrier sets an opening reserve of $12,000 at FNOL. The inspection finds $15,500 of damage, so the reserve rises by $15,500 − $12,000 = $3,500. The claim is paid on May 15, a cycle time of 42 days from FNOL.
How it affects a settlement
FNOL does not change the amount owed, but it starts the clocks that govern when it must be paid. Very late notice can also give the carrier a policy defense if the delay hurt its ability to investigate, depending on state law.
In practice
The initial report that a loss has occurred: the moment a claim is born. Everything the carrier later knows about the claim accumulates from FNOL onward as documents: reports, estimates, photos, correspondence. Cycle time is usually measured from FNOL to payment.
Related
Cycle time · Prompt-pay laws · Reduce claims cycle time · property claims glossary