Definitions for "casualty loss"
Financial loss or loss of property arising from a sudden, unexpected event such as an accident.
The tax law allows a tax deduction for the loss of property due to fire, storm, shipwreck, or other casualty. Items that are stolen also fall into this category. There are limitations on the amount you can deduct.
A financial loss caused by damage, destruction, or loss of property as a result of an unexpected or unusual event.