When applying for coverage and for the time the policy is active, you must assume reasonable care with almost any kind of insurance policy. After reading your own policies, make sure you use and can document reasonable care.
A clause states that you must take all reasonable steps to prevent loss or damage to the property insured, all home insurance coverage has this clause. An insurer may choose to deny a claim or parts of one, when it is deemed that proper care was not assumed, such as: where the initial event was fortuitous but no action has been taken to prevent the ongoing effects.
Why do policies contain such clauses?
Monies paid out in an insurance claim come from the premiums that customers pay. When damages could have been prevented or at least minimized and if the customer has no responsibility to take action, premiums would inevitably rise by a great deal.
So, what exactly is "reasonable care" and what affect, if any, will it have on you?
Reasonable care is a term you often hear used by insurance companies and government bodies, and basically, it means what it says. The information included in the application for home insurance is also an area where you are responsible for reasonable care, make sure the paperwork is complete, and accurate. 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.
Know what you are obligated to care for during the term of your plan, and be careful to read and abide by the terms of the agreement. All parts of the agreement need to be fulfilled in order to be assured that coverage is not invalidated due to failing to adhere to obligations. A claim not usually be paid out, if this is to happen. You are accountable for a certain amount of care during the policy, so make sure you know and follow the stipulations carefully.
Negligence is to be avoided, and reasonable care always taken. You are always obligated to use reasonable care, this is something every insurance policy requires. Risks or damages are to be reduced as much as possible, it's your responsibility. This means that, say for example; In the winter, the chance of your water pipes freezing and causing damage is a concern, so be sure to have your property heated so that the danger of this happening is decreased.
Could most claims refused by insurance companies then?
Absolutely not. There are hardly any claims that an insurance company will be able to deny due to this part of the policy. 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.
Surprisingly, there are a great deal of people that become reckless with their property that is insured, not knowing about their particular responsibilities covered by the policy. It is abundantly clear that thinking like this is incorrect. You do have a duty to take reasonable care.
Take reasonable care when completing your home insurance application and then, once you are covered, take steps to prevent loss or damage. Unnecessary claims will be reduced, and property and homes will be more secure.
A clause states that you must take all reasonable steps to prevent loss or damage to the property insured, all home insurance coverage has this clause. An insurer may choose to deny a claim or parts of one, when it is deemed that proper care was not assumed, such as: where the initial event was fortuitous but no action has been taken to prevent the ongoing effects.
Why do policies contain such clauses?
Monies paid out in an insurance claim come from the premiums that customers pay. When damages could have been prevented or at least minimized and if the customer has no responsibility to take action, premiums would inevitably rise by a great deal.
So, what exactly is "reasonable care" and what affect, if any, will it have on you?
Reasonable care is a term you often hear used by insurance companies and government bodies, and basically, it means what it says. The information included in the application for home insurance is also an area where you are responsible for reasonable care, make sure the paperwork is complete, and accurate. 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.
Know what you are obligated to care for during the term of your plan, and be careful to read and abide by the terms of the agreement. All parts of the agreement need to be fulfilled in order to be assured that coverage is not invalidated due to failing to adhere to obligations. A claim not usually be paid out, if this is to happen. You are accountable for a certain amount of care during the policy, so make sure you know and follow the stipulations carefully.
Negligence is to be avoided, and reasonable care always taken. You are always obligated to use reasonable care, this is something every insurance policy requires. Risks or damages are to be reduced as much as possible, it's your responsibility. This means that, say for example; In the winter, the chance of your water pipes freezing and causing damage is a concern, so be sure to have your property heated so that the danger of this happening is decreased.
Could most claims refused by insurance companies then?
Absolutely not. There are hardly any claims that an insurance company will be able to deny due to this part of the policy. 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.
Surprisingly, there are a great deal of people that become reckless with their property that is insured, not knowing about their particular responsibilities covered by the policy. It is abundantly clear that thinking like this is incorrect. You do have a duty to take reasonable care.
Take reasonable care when completing your home insurance application and then, once you are covered, take steps to prevent loss or damage. Unnecessary claims will be reduced, and property and homes will be more secure.
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