Property claims glossary
What is a large loss claim?
A large loss is a claim big enough to need senior review or specialist handling, often six figures or more, with hundreds of estimate lines, several coverages and complex endorsements. It matters because large losses concentrate payment risk and time: more lines, more documents and more places for the figures to drift.
Worked example · fictitious claim
A house fire produces a $240,000 dwelling estimate, $60,000 of contents and $18,000 of additional living expense, a total of $240,000 + $60,000 + $18,000 = $318,000. A 1% pricing error across those lines would be $3,180.
How it affects a settlement
Large losses are usually paid in stages, with advances, ACV payments and later releases of depreciation, so the statement of loss must account for every prior payment. Each stage is another chance for the running total to drift.
In practice
A claim large enough to warrant senior review, often six figures and up, with hundreds of estimate line items and complex coverage. Large losses concentrate leakage risk: more lines, more endorsements, more places for the arithmetic to drift.
Related
Statement of loss · Reserve · AI property claims review · property claims glossary