Which of the following is NOT a factor in determining a loss under a dwelling policy?

In the context of a dwelling policy, factors influencing a loss typically include the cause of the damage, the extent of the damage, and the actual cash value of the loss. The cause of the damage helps to determine if the loss is covered under the policy's terms; for instance, damage resulting from a covered peril versus an excluded peril.

The extent of the damage is crucial as it quantifies the severity and implications of the loss, which directly impacts the payout amount. The actual cash value plays a vital role as it reflects the depreciated value of the property at the time of loss, allowing for an accurate assessment of the loss that aligns with the policy’s coverage.

However, the amount negotiated by the insured is not a standard factor in determining the loss as it may imply subjective adjustments rather than objective criteria grounded in the policy’s established conditions. Insurance adjusts claims based on a predetermined framework, including the extent of damage and calculated value rather than on negotiations or haggling over the amount. Therefore, this option stands out as not being a formal factor in the assessment of a loss under a dwelling policy.