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Risk and Loss

Causation, hazard, and loss-mechanics terms.

Risk and loss pages explain how insurance language describes the event itself, the financial impact, and the split between the insured’s share and the insurer’s share.

Start Here

Reading Paths

If the reader is asking… Start here
Is this a repair file or a write-off style file? Partial Loss, Total Loss
Why is the amount lower than the cost of new replacement? Depreciation, Actual Cash Value, Replacement Cost
What emergency steps had to happen before the claim stabilized? Mitigation of Loss, Claim
Why is damaged property still affecting the numbers after the loss? Salvage, Total Loss

Why This Section Matters

Loss language affects expectations. Readers often know a bad event happened but still need to understand how insurance translates that event into a deductible, valuation method, settlement amount, or recovery claim.

This section is especially useful when a claim moves beyond “something was damaged” and into “what kind of loss is this?” The difference between Mitigation of Loss, Partial Loss, and Total Loss often determines the next practical step in the file.

In this section

  • Depreciation
    Depreciation in Canadian insurance: how age, wear, or obsolescence can reduce claim settlement value.
  • Mitigation of Loss
    Reasonable steps taken after a loss to prevent further damage.
  • Partial Loss
    Loss that leaves the property repairable rather than a total loss.
  • Total Loss
    Total loss in Canadian insurance: how settlement changes when repair is not the practical outcome.
Revised on Friday, April 24, 2026