When applying for coverage and for the time the policy is active, you must assume reasonable care with almost any kind of insurance policy. It is wise to document reasonable care, after looking over your own insurance coverage and understanding the terms.
Your home insurance policies contain a clause which states that you must take all reasonable steps to prevent loss or damage to the property insured by the policy. Failure to do so will give the insurer the right to decline the claim - or relevant part of the claim, e.g. when one does not actively try to prevent further damage caused by an incident that was by chance.
What is the reason for a clause like this?
Customer premiums are the source of the money paid out in claims. Premiums would certainly be much higher if customers did nothing to try to stop damages from occurring, or do not try to limit damage, once it has begun.
When does this make a difference to you, and what does "reasonable care" entail?
It's pretty self explanatory, and reasonable care is something that is discussed by areas of government and insurance policy makers. So, when completing your home insurance application, for example, you should take reasonable care that you complete it correctly. While applying, if someone does not include that they have had other claims in the past for example, and later this is found out, the insurance coverage and any claims could be revoked.
Once you've got your insurance in place, you do need to make sure you fully understand your obligations as part of the coverage. Having your coverage be termed invalid is the possible alternative if you choose to not honor your part of the policy's stipulations. This means that should you make a claim, typically it will not get paid. You are accountable for a certain amount of care during the policy, so make sure you know and follow the stipulations carefully.
Do not neglect your obligations, and be sure to use reasonable care. Of course, all insurance companies will expect you to take reasonable care of the insured item. You have a duty to your insurer to minimize and manage any risk. This means that, say for example; If the temperature is below freezing, don't leave your property unheated or with the water supply on without taking preventative measures to stop burst pipes.
Can it be that many claims are refused by the insurance company?
No. In reality, it means insurers can exclude very few claims under this condition. What is 'reasonable' is the real question here. The protocols are followed by the insurance company in these areas, and they are sure to be thorough.
There are those who are careless with their insured property, incorrectly thinking that they have no obligations in this area. It is abundantly clear that thinking like this is incorrect. You do have a duty to take reasonable care.
The home insurance application should be filled out using reasonable care, and prevention to damage of property or theft is part of your obligations. This will help keep your property safe and likely reduce claims.
Your home insurance policies contain a clause which states that you must take all reasonable steps to prevent loss or damage to the property insured by the policy. Failure to do so will give the insurer the right to decline the claim - or relevant part of the claim, e.g. when one does not actively try to prevent further damage caused by an incident that was by chance.
What is the reason for a clause like this?
Customer premiums are the source of the money paid out in claims. Premiums would certainly be much higher if customers did nothing to try to stop damages from occurring, or do not try to limit damage, once it has begun.
When does this make a difference to you, and what does "reasonable care" entail?
It's pretty self explanatory, and reasonable care is something that is discussed by areas of government and insurance policy makers. So, when completing your home insurance application, for example, you should take reasonable care that you complete it correctly. While applying, if someone does not include that they have had other claims in the past for example, and later this is found out, the insurance coverage and any claims could be revoked.
Once you've got your insurance in place, you do need to make sure you fully understand your obligations as part of the coverage. Having your coverage be termed invalid is the possible alternative if you choose to not honor your part of the policy's stipulations. This means that should you make a claim, typically it will not get paid. You are accountable for a certain amount of care during the policy, so make sure you know and follow the stipulations carefully.
Do not neglect your obligations, and be sure to use reasonable care. Of course, all insurance companies will expect you to take reasonable care of the insured item. You have a duty to your insurer to minimize and manage any risk. This means that, say for example; If the temperature is below freezing, don't leave your property unheated or with the water supply on without taking preventative measures to stop burst pipes.
Can it be that many claims are refused by the insurance company?
No. In reality, it means insurers can exclude very few claims under this condition. What is 'reasonable' is the real question here. The protocols are followed by the insurance company in these areas, and they are sure to be thorough.
There are those who are careless with their insured property, incorrectly thinking that they have no obligations in this area. It is abundantly clear that thinking like this is incorrect. You do have a duty to take reasonable care.
The home insurance application should be filled out using reasonable care, and prevention to damage of property or theft is part of your obligations. This will help keep your property safe and likely reduce claims.
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