Your duties when a loss occurs

I know it might sound a little strange to some, but as an insured you still need to secure your property to the best of your ability when a loss occurs.

It is also the duty of the insured to cooperate with the insurer in the investigation and settlement of the claim. I will briefly touch on some important areas concerning this duty.

#1 Notice of Loss
You should notify your insurer promptly of the loss. In other words, as soon as reasonably possible, the insurer must also be given details of how, when, and where the loss occurred. Why collect such information, you ask?  It helps make an accurate determination as to whether the loss involved a covered location and a covered peril occurring during the policy period. With today's technology, I always suggest taking some digital pictures of your loss. A camera phone can be a great resource at the scene of an accident.

#2 Police Report
If a law has been broken, notify the police. This helps to assure that questionable circumstances are recorded.

#3 Preservation of Property
Let's take a roof loss for this example.  Suppose your roof was blown off in a windstorm and you had computers and electronic equipment in that room. As an insured, you must take all reasonable steps to protect the property from further damage. Remember, the costs of emergency and temporary repairs are included in the settlement of the claim, subject to the limit of insurance.

#4 Inventory Inspection
The insurer may require a complete inventory of damaged and undamaged goods.  The insured must allow the insurer to inspect the property and to examine the records proving the loss. This helps in applying the coinsurance clause. This will also reduce the number of fraudulent claims. 

#5 Proof of Loss
You might be required to sign a sworn proof of loss containing information requested by the insurer.  The insurer will give the insured 60 days to comply and if the insured does not comply within the 60 days, the company may invalidate the insured's claim. Sometimes an extension will be granted for the insured.

#6 Examination Under Oath
The policy requires any insured to submit to questioning under oath. If there is more than one insured they will be questioned while not in the presence of the other. This is a very effective tool to in discovering and/or combating fraud.

Review
This is a very brief explanation of what an insured should do in the event of a loss. Make sure your first calls are to your insurance agent - and the police (if necessary). They can help you through the next steps in getting back into business.