When you buy insurance for your car, home, or business, you buy peace of mind. But many policyholders are confused by the term “covered loss.” Knowing what it means can be crucial when filing a claim. A covered loss, at its core, defines when your insurance will help you. So why is this concept so crucial? Defining a Covered Loss A covered loss is any damage or financial setback your insurer agrees to pay under your policy. It’s an event or situation specifically included in your agreement. For example, if your homeowner’s policy covers fire, theft, and wind damage, and your house is damaged by fire, that counts as a…