Which term describes the decrease in value after a loss occurs?

The term that describes the decrease in value after a loss occurs is 'Loss.' In the context of insurance and economics, a loss refers to the financial impact or decline in value resulting from an insurable event. When a property is damaged or a claim is filed, the decrease in its market value or replacement cost represents the loss to the owner. This concept is crucial in determining coverage amounts, premiums, and claims adjustments in insurance policies.

The other terms mentioned, such as risk, exposure, and hazard, relate to different aspects of insurance and policy management. Risk describes the uncertainty or possibility of a loss occurring, exposure pertains to the extent or degree of risk present in a situation or asset, and hazard refers to any condition that increases the likelihood or severity of a loss. Understanding these distinctions helps clarify how loss specifically relates to financial diminution after an event.