Loss Severity

How big losses tend to be when they do happen. High-severity, low-frequency risks (like a total fire) are exactly what insurance is best at absorbing.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.