Under Section II - Liability Coverage of a homeowners policy, which item is NOT a duty of the insured after an occurrence?

Under Section II - Liability Coverage of a homeowners policy, which item is NOT a duty of the insured after an occurrence?

• A. Make voluntary payments to the claimant
• B. Notify the insurer
• C. Cooperate with the insurer
• D. Protect the property from further damage

Answer: (A)

After an occurrence under liability coverage, the insured must notify the insurer, cooperate with the insurer, and take reasonable steps to protect the property from further damage. These duties help the insurer manage investigation, defense, and settlement, and to preserve evidence. Making voluntary payments to the claimant is not a duty. Paying a claim or admitting liability without the insurer’s consent can jeopardize coverage because the insurer has the right to control settlements and defense. The insured should wait for the insurer’s guidance rather than making a payment.

After an occurrence under liability coverage, the insured must notify the insurer, cooperate with the insurer, and take reasonable steps to protect the property from further damage. These duties help the insurer manage investigation, defense, and settlement, and to preserve evidence.

Making voluntary payments to the claimant is not a duty. Paying a claim or admitting liability without the insurer’s consent can jeopardize coverage because the insurer has the right to control settlements and defense. The insured should wait for the insurer’s guidance rather than making a payment.