Mitigation of Damages: What’s That?

In the aftermath of a hurricane, property damage can be extensive, and policyholders may wonder what steps they should take to ensure that they receive full compensation from their insurance company. One important consideration is the policyholder’s duty to mitigate damages. This means that policyholders have a responsibility to take reasonable steps to prevent further damage or loss from occurring after a hurricane or other event that causes property damage.

Failure to mitigate damages can result in an insurance company reducing the amount of compensation it provides for the damage. For example, if a policyholder fails to cover a broken window after a hurricane, allowing rainwater to enter the home and cause additional damage (to components of the property that were not previously damaged by the hurricane), the insurance company may argue that the policyholder did not fulfill their duty to mitigate damages and reduce the amount of compensation accordingly.

In the context of a hurricane insurance claim, it is especially important for policyholders to take steps to mitigate damages. After a hurricane, damage to a property can worsen if not promptly addressed, and insurance companies may look for opportunities to deny or reduce claims if they feel that policyholders did not take reasonable steps to prevent further damage.

To fulfill their duty to mitigate damages after a hurricane, policyholders should take steps such as covering broken windows and damaged roofs, removing debris from the property, and securing the property to prevent theft or vandalism. It is important to document all mitigation efforts and keep receipts and invoices related to any repairs or services performed.

By fulfilling their duty to mitigate damages, policyholders can help ensure that they receive full compensation for their hurricane-related property damage from their insurance company. Failure to do so can result in reduced compensation and additional stress during an already difficult time.