Do you know what it takes to be compliant with your policy’s "Duties After Loss?"
How important is it to comply with all “Duties After Loss,” that are listed in your homeowner’s insurance policy?
To the best of an insured’s ability, it is very important to comply (or at least substantially comply) with all “Duties After Loss,” that are listed in this corresponding portion of nearly all insurance policies in Florida.
Common duties that homeowners must comply with after a loss occurs to their home are:
- provide “prompt” notice of the loss to the carrier;
- mitigate damages caused by the loss;
- provide documents and records requested by the carrier;
- allow the carrier to inspect the property and damage;
- submit to examinations under oath conducted by the carrier;
- preserve any damaged property for inspection by the carrier.
What is “prompt” in connection with the insured’s duty to provide notice of the loss to the insurance company?
The language of the policy governs nearly all matters associated with the respective rights and obligations of both parties under the contract. If the policy is silent regarding a particular matter, Florida Law would apply and govern the issue.
Some policies may contain language stating that any loss reported later than 14 days after discovery, will not be considered prompt for these purposes. If this strict language is not included, an insured would be well served in providing notice of the loss to their insurance carrier, as quickly and promptly as possible.
What if the damage is not visible until quite a bit of time has elapsed since the date of loss?
This is actually quite common and does not necessarily mean the claim will not be covered.
At times, the damage associated with a loss is not immediately discoverable by the homeowner. This situation is common with water losses that originate within walls or roof leaks from windstorms that do not immediately manifest in visible damages. This was especially common with regard to Hurricane Irma claims and we still have clients reporting this type of damage.
Generally, it is important to keep in mind that (under the law) windstorm or hurricane claims can be reported to the insurance company within 3 years of discovering the damages at issue. But, an insured is not legally required to see through walls and cannot be on notice of damage that was impossible to see, until a later date.
In that instance, it may be helpful to seek the guidance of a qualified claims professional or attorney, such as the experienced lawyers at Kowzan Law, to see whether any given delay in reporting the loss is fatal to coverage.
Once reported, what should homeowners do if there is an active leak or similar damage to their home?
This question speaks to one of the main underlying issues related the aforementioned Duties After Loss, i.e. the requirement that an insured timely mitigate the damages caused by a given loss, that is included in most insurance policies. If an active leak is occurring, the first step is to turn off the main water supply line to the home. Thus, stopping any active leak from continuing. From there, it depends on how much damage is caused by the loss at issue.
Oftentimes, homeowners need guidance as to what should be done in a disaster situation where there is more extensive and widespread damage. This is where the assistance of professionals, such as the attorneys at Kowzan Law, could prove invaluable. Most homeowners have never had damage previously occur to their homes and are understandably uncertain as to what should be done next.
Some losses are so destructive that the retention of the services of a professional emergency water remediation vendor is the only real option to properly address the damage. This is common and should be done in the event of a large loss. These companies come into the home and place equipment such as fans and dehumidifiers to actively dry out the existing water.
Instead of requiring the insured to come out of pocket for this service, these mitigation vendors will ordinarily do the necessary work for an insured in exchange for an assignment of their benefits under the policy so that the insurance company pays the vendor directly for its work on the claim.
Conversely, if there is a relatively small, contained leak or loss, located in a specific and limited area of the property-thankfully, necessary mitigation efforts will be much more limited in scope. But, generally, any standing water should be removed and the property is dried out as soon as possible. What is required to do so varies claim by claim and we can further direct an insured if there is any question of the proper next steps.
What documents and records will a homeowner be required to provide to the insurance company in connection with their claim?
While there are certain documents and records that are commonly requested by an insurance company when it receives an insured’s claim, the exact nature of the document requests will vary by carrier, loss, claim and adjuster.
Generally, a homeowner should be prepared to provide the carrier with copies of any receipts for initial repairs that are made to a loss, in addition to other bills and statements that are reasonably related to the given loss. For example, if there is a plumbing leak in an insured’s bathroom and a plumber is the first professional called out to address the damage; it would be important to retain copies of all documents and records associated with that work.
Undoubtedly, the carrier will be interested in receiving these records and will likely send correspondence seeking it. On the other hand, an insured would also want to retain these records to the extent they show that it reasonably mitigated the damages caused by the loss via the hiring a qualified plumber to ascertain the cause of loss and remedy any active leaks.
Some insurance companies request copies of utility bills, pre-purchase inspection reports, copies of documents associated with prior repairs to the home, copies of other insurance policies you had in the past with other companies, and other various items. But, based upon the facts of the claim, if certain requested documents do not exist or the request is exceedingly irrelevant or nonsensical; that would be an example of when to consider refraining from providing them.
Substantial compliance with the requests is the goal so that an insured can demonstrate that it similarly complied with its duties under the law and policy. However, an insured is not legally required to allow abusive conduct or the carrier’s engagement is nothing but a harassing fishing expedition that has no foundation in law or fact.
That being said, the decision as to what requests an insured will comply with and which they will not, is an important decision that should be made in an educated manner, while keeping the ultimate goal of coverage and the issuance of fair compensation in mind.