No duty if you fail to comply

We often give tips on on this blog about how to prepare for a loss from a fire, theft or natural disaster. This information is helpful for homeowners and business owners alike. There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. Your personal property policy outlines what you will need to provide to receive your insurance settlement.

There is standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statments that might surprise you, and of which you need to be aware.

One statement is that they (the insurance comanies) have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or lost items, you must also notify the police. You will be expected to cooperate fully if there is an investigation of your claim. You'll be required to prepare an inventoy of the damaged items, listing the quantity, description, value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested. A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine completing that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'll be experiencing?

Me either.