Post Loss Duties under Insurance Policy
As a policyholder, it’s crucial that you understand your post loss duties under your insurance policy. Post loss duties refer to the obligations that the policyholder has after the loss occurs. These duties are usually set out in the insurance policy, and they must be strictly followed to ensure that the policyholder is not denied coverage. Some common post loss duties that policyholders have include:
- Prompt notice of loss: This duty requires the policyholder to give notice of the loss as soon as possible after it occurs. Failure to provide prompt notice could result in a denial of the claim.
- Cooperation: Policyholders have a duty to cooperate with their insurance company during the claims process. This may include providing documentation or allowing the insurance company to inspect the damaged property.
- Mitigation of damages: The policyholder has a duty to take reasonable steps to mitigate the damages caused by the loss. This may include preventing further damage or making temporary repairs.
- Examination under oath: The insurance company may request that the policyholder submit to an examination under oath. This is a formal proceeding in which the policyholder is questioned under oath about the loss.
If the policyholder fails to comply with these post loss duties, the insurance company may deny coverage. For example, if the policyholder does not provide prompt notice of the loss, the insurance company may argue that it was prejudiced by the delay and deny the claim. Similarly, if the policyholder does not cooperate with the insurance company or attend an examination under oath, the insurance company may deny the claim. That said, in order for the insurance company to deny coverage based upon a policyholder’s failure to comply with post loss duties of the insurance policy, the insurance company must prove that such failure resulted in some sort of actual prejudice to the insurance company in its investigation of the claim. In many instances, even if there is a technical breach of post loss duties by the policyholder, the breach does not cause any prejudice to the insurance company and, thus, should not result in a claim denial.
The best course of action for any policyholder is to go above and beyond, with respect to post loss duties under the insurance policy, so as to avoid being put in a situation where the insurance company has a reason to deny the claim under the post loss duties, by reading the insurance policy and ensuring strict compliance with the post loss duties. If you have failed to comply with your post loss duties, or your insurer incorrectly states that you have breached the policy in any way, and your insurance claim has been denied, Parrish Law can help. Our experienced attorneys can review your policy and the facts of your case to determine if there are any legal arguments that can be made to overturn the denial. In some cases, we may be able to negotiate a settlement with the insurance company without the need for litigation. In other cases, we may need to file a lawsuit to protect your rights.
In conclusion, complying with post loss duties is critical to the success of any insurance claim. Policyholders must take these duties seriously and understand the consequences of failing to comply. If you have any questions about your post loss duties or if your insurance claim has been denied, contact Parrish Law to schedule a consultation with one of our experienced attorneys.