What is a requirement for a loss to be covered under an insurance policy?

For a loss to be covered under an insurance policy, it is essential that the loss is not out of the control of the policyholder. This requirement relates to the principle of insurable interest and the nature of risk management in insurance. If a loss occurs due to circumstances beyond the policyholder's control, it aligns with the concept that the insurer is willing to accept risks that are accidental and uncertain, rather than predictable or unavoidable risks.

Understanding this principle ensures that policies are designed to protect against genuine accidental losses rather than those that are expected or inevitable. Insurance is fundamentally about protecting individuals and businesses from unforeseen and accidental losses that fall within a certain realm of reasonableness and risk, rather than situations that are entirely out of their control. Therefore, the assertion that the loss must not be out of the control of the policyholder is a cornerstone of coverage eligibility within insurance policies.