Duties Required of the Insured Essay
When submitting a claim to an insurance company the insured has specific duties they are expected to fulfill in order to settle the property loss. The first duty required of the insured to settle a property loss is to give the insurer prompt notice of the loss. This usually includes details like what happened, where it happened, and how it happened. If anyone was injured or if there was a witness the insured must include the person’s contact information. The insured is also responsibly for contacting the police if necessary. This notice should also come from the insured and not other agent.
The insured must also “report lawsuits or threat of suits to their insurers themselves”. (Renau 4) The insured is also responsibly for protecting the property from further damage. In the case of an auto accident, the insured would be expected to have the car towed to a repair shop if necessary. The insured is also expected to keep accurate records of the loss and provide these records to the insurance company. This may include pictures of damage, records of any repair expenses, including an inventory of all items replaced or repaired, receipts, and documents that may justify the expense,
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The insured is expected to “cooperate in any investigation, settlement, or defense of any claim or suit”. (Zevnik, 201) This may mean they will need to submit to examination under oath or submit proof of a physical examination. The insurer also has corresponding options and duties. For example, “the insurer has no duty to provide coverage for an otherwise covered loss if the insurer is prejudiced by the failure of the named insured, another insured, or a representative of an insured, to comply with the list of duties for the insured.
” (Zevnik, 84) Though the exact duties the insured will be expected to perform to settle property loss will vary depending on the policy, insurance company, and type of property, these duties generally apply to most policies. Works Cited Renau, Donald. “Insured Cannot Rely on Others to Notify Carrier of a Claim” American Agent and Broker. Jan 2006. 78 (2006) 4-7. Zevnik, Richard. The Complete Book of Insurance: Understand the Coverage You Really Need. Naperville: SphinxLegal, 2004.