Los Angeles Claims Adjuster Property and Causality Practice Exam

Who bears the burden of proof for the value of damaged property in an insurance claim?

1. The insurance adjuster

2. The insurer

3. The insured

4. The witnesses of the incident

The correct answer is: The insured

In an insurance claim involving damaged property, the insured is responsible for proving the value of the damaged property. This requirement stems from the principle of indemnity in insurance, which aims to restore the insured to the financial position they were in before the loss occurred, without allowing them to profit from the claim. As part of this process, the insured must provide sufficient evidence to support their claim, demonstrating the extent of the damage and the value of the property at the time of the loss. This responsibility usually involves submitting documentation such as receipts, appraisals, or other forms of proof that establish both the existence and value of the property. The claims adjuster and the insurance company will review this evidence, but they are not tasked with initially proving or establishing value. Witnesses may provide supporting testimony regarding the circumstances of the incident, but they do not bear the burden of proof regarding property value either. Therefore, since the insured must substantiate their claim with clear evidence of property value, they are the ones who bear this burden.