What is a claim in the context of insurance?

In the context of insurance, a claim is fundamentally understood as a request for payment under the terms of an insurance policy. When a policyholder experiences a loss due to an event covered by their insurance—such as damage, theft, or liability—they submit a claim to their insurance company to seek compensation or coverage for that loss. This initiation of a claim triggers a process where the insurer evaluates the circumstances and determines the amount payable according to the policy's conditions.

Other options represent different concepts within the insurance framework. The description of coverage terms pertains to the details outlined in a policy, which outlines what is covered, the limits, and any exclusions. A type of fraud in insurance refers to illegitimate actions taken to benefit from a policy inappropriately, such as filing false claims. Lastly, evaluating risk is a crucial component of underwriting, where insurance companies assess the likelihood of potential losses when determining premiums and coverage terms. Each of these aspects plays a role in insurance but does not define what a claim is.