|
INSURED’S DUTIES IN THE EVENT OF LOSS
The conditions discussed above explain the duties of the insurance company. On the other hand, this condition imposes a series of requirements on the insured. They are triggered after a loss occurs. Some of these duties fall to the insured even though the insurance company does not demand they be completed. Others need be done only if the company demands or requires it.
Duties of the Insured Even When No Request Is Made:
- Protect property from further loss.
The insured is expected to act prudently, as if there were no insurance on
the property. Examples are protecting openings, drying out the building
and property and lubricating machinery. Any expense incurred by the
insured for such actions may be included in the proof of loss for an
insured occurrence.
- Separate damaged property from
undamaged property.
- Put the property and the premises
back in the best possible order.
- Notify the police or law
enforcement authorities if a crime has been committed.
- Give immediate written notice of
loss to the insurance company.
- Furnish a complete inventory of
damaged, destroyed and undamaged property. This
includes detailed quantities, costs, actual cash value and the amount of
loss claimed.
Duties of the Insured Only When Requested By Company:
- Furnish verified plans and specifications
of any destroyed or damaged building, fixtures
and machinery.
- Display all remaining property.
- Submit to examination under oath.
- Produce all books of accounts,
bills, invoices and other vouchers for examination and permit copies of
such records to be made.
- Furnish a proof of loss
within 60 days of its being requested. The proof of loss form is provided
by the insurer. It contains a series of statements signed and sworn to by
the insured. Some of the items that must be included are the time and origin
of loss, the interest of the insured and all others in the property, the
actual cash value of each damaged or destroyed item, and the total amount
of loss. Others include any encumbrances on the property, details on any
other insurance carried, any changes in title to the property since policy
inception as well as any changes in the use, occupancy
or location of the property. The final information needed is identifying
the building occupants and describing their operations and whether the
building was situated on leased ground.
|
