What Is The “Cause of Loss?”

It is not uncommon for a property owner that has had an insurable loss at their property, to hear the term “cause of loss” being used by the insurance adjuster, the carrier, or the contractor that is restoring the property.  Oftentimes the owner will ask what this term means.  By definition, the causes of a property loss are:

“The perils that can bring about or trigger loss or damage. Can be direct (the action immediately precedes the loss) or indirect (part of an uninterrupted chain of events leading to the loss).”


Common causes of loss for property claims would be weather events, viz.  hurricanes, tornadoes or other wind, rain, fire, water escaping from a broken pipe or plumbing fixture, vehicle impact, sinkhole, etc.

When you think about it, it seems pretty straight forward, but the property owner sometimes needs a bit of explanation, especially in more complex situations.  I like to use the analogy of  body damage to an automobile that is the result of a tire blowout, or a break failure.  Though there may be many thousands of dollars in repairs to the body of the vehicle, the actual “cause of the loss” is not a part of the loss.  Your brakes and tires are items that must be maintained by you, and if their failure causes an accident and property damage, the property damage will be covered in the event. The trigger for the accident is not typically part of the loss.

If a plumber is hired to find a broken pipe under a slab, the leak search, the chopping of a hole in the slab, and the digging or excavation to access the broken pipe are all part of the loss. The actual repair of the “cause” might be only a few dollars, but it is never included in the claim. Once again, all of the necessary repairs to return the property to a “pre loss” condition are normally covered under the owner’s policy.

Restoration Xperts is a Florida Licensed General Contractor that specializes in Property Restoration, usually for damages that are part of a covered loss. Water damage repairs and mold remediation are two of the most common activities that are part of our repertoire. The repairs to the property are typically the covered part of an insurance claim, but once again, the only part that is not included in the claim is the “Cause of Loss”.

Restoration Xperts does not determine coverage, nor is it licensed to adjust claims.  It is, however, highly qualified to prepare the required estimates and opinions of what action to take in an emergency, and what repairs are necessary to return a property to its pre-loss condition.

Posted in Fire Damage, Water Damage, Wind Damage
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