Question By: Many commercial property policies detail duties insureds owe to their carrier following a loss. Failure to fulfill these responsibilities can potentially lead to denied claims, delayed payments, and unrenewed or even canceled policies.
Here are common duties most policies require insureds to uphold in the event of a loss:
Notify the police if any laws may have been broken amid the loss.
Contact the carrier as soon as possible, detailing how, when, and where the loss occurred. Include a description of the property involved.
Take all reasonable steps to protect the property from further damage. Keep a record of the expenses required to do so, including hours and wages.
Provide the carrier with an inventory of the damaged and undamaged property if requested, including quantities, costs, values, and the amount of loss claimed.
Set aside the damaged property, keeping it in the best possible condition for examination.
Following the insurance company's instructions regarding the handling and preservation of the damaged property.
Keeping receipts for expenses incurred as a result of the loss, such as temporary repairs or additional living expenses if the property is uninhabitable.
Providing the insurance company with any information and documentation requested, such as a list of damaged or destroyed property and receipts or estimates for repair or replacement costs.
Note: The exact duties may vary depending on the terms of the insurance policy and state laws.
Visit https://midwestinsurancegroup.com/2023/01/26/policyholder-duties-following-a-commercial-property-loss/ to know more.
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