LOSS PAYMENT
This condition addresses several issues, including to whom and when a claim payment will be made. This condition provides that payment will be made to the named insured unless some other person is named in the policy (e,g., your spouse) or is legally entitled to receive payment (e.g, your mortgage lender).
This condition further provides that loss payment will be made sixty days after the insurer's receipt of proof of loss and:
- the insured and the insurer agree to the amount of loss;
- there is an entry of a final judgment in the lawsuit; or
- there is the filing of an appraisal award with the insurer.
This condition provides that an insurer has no responsibility for property abandoned by an insured, whether for purposes of repair, demolition, disposal, or otherwise. In effect, this condition confirms that the insurer's duty in the event of a covered loss is fundamentally one of paying money.
MORTGAGE CLAUSE
This set of conditions sets forth the insurer's and mortgage lender's respective rights and obligations. (You can rest assured that most mortgage lenders are quite aware of their rights and obligations with respect to your policy.) The principal things that you need to know are that any loss payable for damage or destruction to the dwelling and other structures will be made both to you and your mortgage lender. Mortgage lenders often will require that claim payments be held in trust or in an account over which they have control in order to assure that the insured effects necessary repairs.
NO BENEFIT TO BAILEE
In effect, this provision is designed to assure that if a moving or storage company hired by you damages, loses, or destroys any of your property, it will be liable for that loss, not your homeowners insurer. Homeowners Insurance Agencies Milton FL
NUCLEAR HAZARD CLAUSE
This condition defines what constitutes nuclear hazard for purposes of the nuclear exclusion, and effectively provides that only direct loss by fire resulting from the nuclear hazard is covered, In the context of current times, this means that radioactive contamination of your property as the result of the leaks from a nuclear generating station would not be covered. Neither would radioactive contamination from a terrorist setting off a so-called dirty bomb.
RECOVERED PROPERTY
This condition details what will happen in the event stolen property is recovered that the insurer has paid for. It requires both parties to give notice to the other that property for which a claim has been made or paid has been recovered. This condition gives to the insured the choice of retaining the claim payment and surrendering the recovered property to the insurer or reclaiming the recovered property.
If the insured elects to keep the recovered property, the loss payment will be adjusted down by the amount the insurer previously paid to the insured for loss of or damage to the property. This means that the insurer can deduct this amount from any outstanding amount of the claim from which payment will be made or that the insured will have to reimburse the insurer for the amount in question.
VOLCANIC ERUPTION
This condition provides that all volcanic eruptions that occur within a seventy-two-hour period will be considered one eruption. This provision is potentially relevant to how many:
- covered losses there may be and
- how many deductibles will apply.
This condition provides that the policy only applies to loss during the policy period. Under the law of many states, a property loss is deemed to have occurred during the policy period when the damage becomes apparent to the insured. Notwithstanding the fact that some kinds of losses occur gradually over multiple policy periods, this provision in-effect provides that in such cases, only the policy in effect when the insured becomes aware (or should have become aware) of the loss will apply.
CONCEALMENT OR FRAUD
This is a highly important condition for all policyholders to be aware of. Concealment or fraud on the part of any person insured - at any time before or after a loss, including at the time of application - will void the policy of that insured altogether. There will be no refund of premiums. Homeowners Insurance Agencies Milton FL
Moreover, the consequences of misrepresentation, concealment, or fraud with respect to applying for an insurance policy or with respect to a claim are far-reaching. Most insurers maintain fraud databanks and share that information with each other and insurance regulatory authorities. If the fraud was in connection, with a claim and you received a payment to which you were not entitled because of your fraud, you could also be subject to criminal prosecution.
Committing a fraud on an insurance company has the potential of affecting your ability to obtain insurance in the future. If you cannot get insurance you may not be able to register your car in some states. Lacking insurance, you may not be able to operate certain kinds of businesses.
LOSS PAYABLE CLAUSE
This condition bears some parallels to the mortgage clause. It provides that if the declarations show a loss payee for specified items of personal property, the policy's definition of insured is amended to include the loss payee with respect to that property.
To know more about insurance and its coverages, you can check out Homeowners Insurance Agencies Milton FL.
