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Simple English definitions for legal terms
casualty gain
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A quick definition of casualty gain:
Term: Casualty Gain
Definition: Casualty gain is a term used in insurance to describe the profit that an insured person or entity makes when the benefits paid out are more than the value of the insured property. In simpler terms, it means that the insurance payout is greater than the value of the damaged property, resulting in a financial gain for the insured.
A more thorough explanation:
Definition: A casualty gain is a term used in insurance to describe the profit that an insured person or entity makes when the benefits paid out exceed the adjusted value of the insured property.
Example: Let's say that a homeowner has a house that is insured for $200,000. Unfortunately, the house is destroyed in a fire, and the insurance company pays out $250,000 to cover the damages. In this case, the homeowner has experienced a casualty gain of $50,000.
Explanation: The example illustrates how a casualty gain works. The insured property (the house) was worth $200,000, but the insurance company paid out $250,000 to cover the damages. This means that the homeowner made a profit of $50,000, which is the casualty gain. Essentially, the homeowner received more money than the property was worth, which is a positive outcome in the context of insurance.