What triggers an insurance claim?

An insurance claim is triggered by an insured peril, which refers to specific risks or events that are covered under an insurance policy. When a loss occurs due to an event that falls within the scope of what the policy insures against—such as theft, fire, or natural disasters—this constitutes an insured peril. The policyholder can then file a claim with their insurance provider to seek compensation for the loss or damage incurred as a result of that event.

In contrast, other options relate to the procedures and conditions of the insurance policy rather than the actual cause for claiming. A policy renewal involves extending the coverage period, a policy cancellation refers to ending coverage, and a deductible payment is the amount the policyholder agrees to pay out of pocket before the insurance coverage kicks in. None of these activities initiate a claim; they are more about the management of the insurance policy itself. Thus, an insured peril is the crucial factor that enables a policyholder to make a claim when a covered event occurs.