Duty to Cooperate

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Recently, it seems like I have been privy to a relatively high number of insureds asked by their carrier, following a loss, to submit to an examination under oath (commonly referred to as an EUO). The most common question I received was, “Can I just choose not to answer or attend?” Although the choice is ultimately the insureds and the ramifications of refusal vary by justification, when dealing with Arizona insureds, I generally advise against such blanket refusals.
Continue Reading Refusing to Answer Questions at an EUO is Usually Not A Good Idea

Earlier this week, I was in Austin, Texas, attending a deposition with Chip Merlin on a hail damage claim. Texas is known for their barbeque so we decided to try out The County Line BBQ on Lake Austin. If you are in Austin, I highly recommend it.

This led me to today’s blog topic – a property insurance case involving damage to a barbeque restaurant.…

Continue Reading An Insured’s Duty to Cooperate in Pennsylvania

When arguing with an adjuster over the value of your personal property claim, receipts can be an invaluable tool. But who keeps receipts? When dealing with theft or loss of property, you may actually have receipts; however in a total loss situation such as a fire, often the receipts are destroyed along with the property. Without fail, your adjuster will ask for receipts to determine the actual existence of lost property and the value. Under the basic homeowner’s policy, the insured has certain duties that must be complied with after a loss. Included in this is that the insured:
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Continue Reading Receipts? Who Keeps Receipts For a Potential Insurance Claim?

Insurance policies have certain provisions that must be complied with in a property insurance claim. These are called duties after loss, and if reasonably requested by the insurer, they must be complied with. Recently, an insurer in New York became involved in litigation over whether the policyholder had shown it the damaged property following a claim.1 The insurer claimed the policyholder failed to show it the damaged property, which affected the insurer’s ability to determine whether there was a loss and the extent of any damages. There are often a couple policy provisions at play in this scenario. There is a duty to mitigate damages and perform necessary repairs as quickly as possible. On the other hand, there is a duty to show the insurer the damaged property.…

Continue Reading The Gamesmanship Of The Property Insurance Claims Process…Yes You Have To Show The Insurer The Damaged Property, But You Also Have To Repair It Promptly

"Maybe if we think and wish and hope and pray it might come true"
            –The Beach Boys

A recent Florida case that involves examinations under oath demonstrates that insurers should  cooperate with policyholders and not try to use technicalities to prevent payment. In First Home Ins. Co. v. Fleurimond, 3D09-2034, 2010 WL 2178839 (Fla. 3rd DCA June 2, 2010), policyholders were allegedly yelled at and badgered during an examination under oath. They left, obtained counsel, and the insurer then refused to reconvene the examination under oath. The policyholders filed suit, demanded an appraisal, and the insurer refused. The trial court ruled that the matter should proceed to appraisal, and the insurer appealed.…

Continue Reading Insurers Should be Nice and Cooperate with Policyholders During Post Loss Obligations

While it is true that a policyholder’s failure to cooperate with the investigation of a claim can result in a denial of coverage, it is important to note that the cooperation clause was not intended to enslave the policyholder and leave them at the mercy of a carrier’s overly burdensome and unreasonable requests….
Continue Reading The Limits Of An Insured’s Obligations To Cooperate