Los Angeles Claims Adjuster Property and Causality Practice Exam

What does a duty of the insured during a claim include in terms of the damaged property?

1. Ignoring minor issues to save costs

2. Arranging for disposal of all damaged property immediately

3. Maintaining records of repair procedures

4. Taking necessary steps for repair or disposal, unless the insurer decides otherwise

The correct answer is: Taking necessary steps for repair or disposal, unless the insurer decides otherwise

The duty of the insured during a claim emphasizes the importance of taking necessary steps for the repair or disposal of damaged property, while also considering the insurer's direction. This responsibility ensures that the insured actively mitigates further damage or loss, which is crucial for a proper claims process. By taking appropriate action, the insured demonstrates good faith in handling the situation and helps protect the insurer's financial interests as well. It is essential to note that this duty does not imply that the insured can take any actions they wish. Instead, they must be prepared to follow guidance from the insurer regarding the repair or disposal of the property. If the insurer has specific instructions or preferences, the insured is expected to adhere to those. Choices that involve ignoring issues or hastily disposing of property do not align with the principle of personal accountability and diligence in claims management. Similarly, while maintaining records of repair procedures is beneficial, it is not the principal duty outlined in relation to damaged property. The focus of this duty is primarily on taking necessary actions for mitigation and restoration based on the insurer’s guidance.