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In this video tutorial, the presenter explains how to create an Affidavit of Loss using Microsoft Word. They recommend starting by opening a new document and selecting 'legal size' in the layout tab, which is typically used for legal documents. Margins can be set to normal, and the presenter suggests using Times New Roman font at size 12, though personal preferences for font and size can be applied. The paragraph spacing should be adjusted to single space. The initial details to be entered include the country and city of residence, followed by the abbreviation "SS" (which stands for "silica"). Finally, the title "Affidavit of Loss" should be centered, bolded, and formatted in the desired font size.