Casualty Loss Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Casualty Loss, written in plain English, along with examples of how it is used.

What is Casualty Loss?

(n) Casualty Loss is the damage and monetary loss occurred to a property, article goods etc due to a sudden, unexpected occurrence of an event which cannot be foreseen and avoided. Casualty loss qualifies for a tax deduction benefit.

History and Meaning of Casualty Loss

Casualty Loss is a legal term that refers to the monetary loss or damage caused by sudden, unforeseen events or accidents to a property, article or goods that couldn't have been prevented. This can include damage from natural disasters, fires, theft, or vandalism. Casualty Loss is an important concept in the field of insurance and tax law. In the United States, casualty loss qualifies for a tax deduction if it meets certain criteria.

Examples of Casualty Loss

Here are a few examples of situations that may qualify as Casualty Loss:

A homeowner's property is damaged by a hailstorm
A car is stolen or wrecked in an accident
A business's merchandise is destroyed in a fire

Legal Terms Similar to Casualty Loss

Here are a few related terms that may overlap with Casualty Loss:

Property Damage: Legal term that refers to harm caused to a person's real or personal property
Negligence: Failure to take proper care in doing something that leads to damage or injury
Acts of God: Refers to natural disasters or unpreventable occurrences that cause damage.