What typically defines the causes of loss covered in an insurance policy?

The Insuring Agreement of the policy typically defines the causes of loss that are covered. This section outlines the scope of coverage provided by the insurance policy, detailing what types of risks or events are insured against. It describes the specific perils or circumstances under which the insurer will pay for claims, essentially establishing the foundation of the contract.

By clarifying the covered risks, the Insuring Agreement helps policyholders understand what is included in their coverage and provides a basis for claims processing. This section is crucial in guiding both insurers and insured parties in determining their rights and responsibilities under the contract.

While other aspects of an insurance policy, such as state and federal regulations or common language used in contracts, influence the overall implementation and interpretation of policies, it's the Insuring Agreement that specifically enumerates the risks that are secured. Specific exclusions, while important in delineating coverage limits, do not define the causes of loss covered but rather clarify what events are not included.