What is an Affidavit of Loss?
An affidavit of loss is a form that swears to the loss of a specified asset or assets. The form is filed with a company that will take action based upon the loss. For example, an affidavit of loss must be filed with the insurer before it will process and provide compensation for the loss of or damage to a covered asset.
How does an Affidavit of Loss Work?
The affidavit will contain the following information:
- Owner of said property;
- Information about the property;
- Nature of Loss; and
- Date of Loss.
Affidavits or loss are commonly required by insurers. Once the affidavit of loss is filed and accepted, the insurer can process and issue a letter of indemnity. This letter of indemnity requests replacement of the destroyed/damaged asset or compensation for the loss. Companies that issue certified documents (such as shares of stock, promissory notes bank cards, etc), may require an affidavit or loss before it will issue new share certificates to the owner. Affidavits of loss may also be required when requesting a replacement for government-issued documents, such as a passport, drivers license, vehicle titles, marriage license, etc.
