THE LOSS IS ONLY THE BEGINNING
After a loss occurs; here are some important obligations you have to
meet before your insurer pays for a loss. The duties help an insurer to
determine whether payment is due or how much it has to pay.
Notification - You must contact the insurance company with accident
details. Notification may be through an agent and it should include the
identity and addresses of any injured persons and any witnesses. Quick
notification starts the entire claims process, and it helps the insurer
to control claim expenses.
Assisting the insurance company - You must help the insurer with
the claim's investigation, settlement or with its defense against any
claim. Helping includes sending the company copies of any accident-related
material. Assistance also means participating in physical exams and interviews
under oath. You’re also required to give your insurer access to all
records (especially medical) related to the accident and a proof of loss
statement (document that has all loss details and information about the
lost property).
Repeated requests for help or information may strain relations between
you and your company. While companies have the right to thoroughly investigate
losses, it should balance its right against your expectation of fair treatment
and privacy.
Preserving the damaged property after a loss - Let’s demonstrate
this important condition with an example. Tina returns home early in the
morning in her convertible and hits a large landscape rock that's in front
of her house. The damage is minor, but the impact causes an alignment
problem that makes it impossible to close the convertible top. Instead
of moving the car into the garage or covering the car, Tina leaves it
in the driveway. It sits there all day, sitting exposed to a downpour
that severely damages the interior and the car's electrical systems. The
car now has to be towed to have the damage inspected when, originally,
it could have been driven. Tina’s inaction complicates a once simple
claim.
Being too quick can also cause problems. A claimant who repairs or disposes
of damaged property before an insurer examination has seriously breached
the insurance contract. This breach could result in an insurer refusing
the claim.
If you have any questions, your insurance agent is an excellent choice
to help you properly understand your insurance policy obligations.
Revised 11/01
COPYRIGHT: Insurance Publishing Plus, Inc. 2000
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