What types of losses are included in the loss history reference?

The inclusion of both catastrophic and non-catastrophic losses in the loss history reference is significant because it provides a comprehensive view of a property's risk profile. Catastrophic losses typically involve significant events that could cause widespread damage, such as natural disasters or major accidents. Non-catastrophic losses, on the other hand, are smaller-scale incidents that may not have severe outcomes but still contribute to the overall loss experience of the property.

By incorporating both types of losses, the loss history reference allows insurers to assess a more accurate risk level when evaluating properties, which can influence underwriting decisions, premiums, and coverage options. This extensive history helps ensure that all potential risks are considered, providing a clearer picture of the likelihood of future claims. Therefore, including both categories of losses enables better risk management and aids in the decision-making process for insurers and property owners alike.