Accurate disclosure and prompt notice of loss: two steps that protect your insurance claim

Insurance compensation often depends on two steps: making accurate disclosures when taking out the policy, and reporting the loss promptly when it occurs.

When taking out the policy

It is the policyholder's duty to answer the insurer's questions accurately and completely. Failing to disclose a material fact or making a false statement may allow the insurer to terminate the contract or reduce the compensation.

When a loss occurs

Notify the insurer as soon as you become aware of the loss, and take reasonable steps to limit the damage. Late notification may give the insurer grounds to refuse payment.

• Give notice in writing or make sure it is recorded.
• Keep photographs, reports and documents showing the loss.
• Take part in the loss adjustment process and request a copy of the report.
• If the claim is rejected or underpaid, ask for the reasons in writing.

Since policy terms vary from contract to contract, it is advisable to consult a lawyer when you receive a rejection or before signing a policy.