Duties of the Insurance Company
When a claim needs to be filed there are certain duties the insurance company and agent are required by the insurance contract to adhere to. The main one that the insured is usually most interested in is getting their property fixed like it was before. And it is expected that the insurance agent or company will take care of the claim and fix the property. But, it is important to know that the insured also has duties outlined in the insurance contract that they are required to adhere to.
The Insured's Duties
One important duty that an insured is required to do is to protect their property after a loss. This obligation required of the insured is usually labeled in the homeowners insurance policy as “Duties After Loss.” These duties include protecting the property from further damage along with determining if any temporary repairs are required to further protect the property until a permanent repair is in place. If temporary repairs would be needed, the insured is also obligated to perform the temporary repairs. In addition, the insured is required to keep a record of their receipts for the products they purchased for the repairs.
Mitigating the Loss
The reasoning for this is simple: keep the damage and loss to a minimum and therefore keep the claim cost to a minimum for both the insured and insurance company. In insurance terms this is called “mitigating the loss.” Mitigate means to lessen the force or intensity of something. So, pretty much the insurance company is asking the insured, to the best of their ability, to try and keep the loss as little as possible until the insurance company can get to the property and get it fixed properly. This seems reasonable and most all homeowners would agree that they would like to keep their losses at a minimum too and gladly adhere to their obligation to protect their property after a loss.
Homeowner's Concerns
Some homeowners do worry about a few things when considering their duty to protect their property after a loss. First, homeowners are concerned about getting reimbursed for the cost of supplies it may take to make reasonable repairs. Yes, the insured will get that cost back. This is why the insured is required to keep a record and receipts of their supply costs. The insurance company will reimburse the homeowner if the supplies were to make reasonable and necessary repairs. The second concern that a homeowner often has about this obligation is if they cause more damage by making reasonable repairs. Again, a homeowner does not have to worry about this. As long as the homeowner tries in good faith to make any necessary and reasonable repairs, the insurance company will reimburse them for their supplies and fix the property back to how it was regardless of any accidents the homeowner may cause by trying to make the repairs.
Necessary and Reasonable Repairs
So, what are considered necessary and reasonable repairs? Say a tree falls on the roof of a house. The reasonable thing to do would be to take a tarp and cover the exposed area of the roof to prevent further damage from the outside elements. Another example would be a water leak. Take for instance a water pipe breaks. The reasonable think to do would be to turn off the main water supply to stop the water from preventing further damage. If one is not sure, they should ask their insurance agent or company when they call to make their claim. The insurance company should be able to give the insured a good list of things they can do to adhere to their obligation to protecting their property.
Knowing the Policy
And, as always, it is important that the insured looks at their particular insurance policy to understand their specific coverages and duties. Although there are some common duties and coverages in all homeowners insurance policies, there are differences so knowing the policy and regularly discussing any questions or concerns with an insurance agent is a good idea.
