What constitutes a 'covered loss' in an insurance policy?

A 'covered loss' in an insurance policy refers to specific types of incidents that are explicitly defined within that policy. This means that for a loss to be covered, it must fall under the scenarios outlined in the terms of the policy. When a policyholder experiences a loss, they will refer to this predefined list of covered events to determine if their situation qualifies for compensation.

Additionally, another critical aspect of a covered loss is that it must occur during the policy's active period. Insurance policies typically have a defined start and end date, and any loss sustained outside of this timeframe generally is not eligible for coverage.

By combining these two points, a comprehensive understanding of a covered loss encompasses both the specific incidents listed in the policy and the timeframe in which the loss must occur. Thus, recognizing that both specified incidents and the timing of the loss play essential roles supports the conclusion that the correct answer encompasses both elements as valid criteria for identifying a covered loss.