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When applying for coverage and for the time the policy is active, you must assume reasonable care with almost any kind of insurance policy. After reading your own policies, make sure you use and can document reasonable care. Your home insurance policies contain a clause which states that you must take all reasonable steps to prevent loss or damage to the property insured by the policy. Failure to do so will give the insurer the right to decline the claim – or relevant part of the claim, e.g. where the initial event was fortuitous but no action has been taken to prevent the ongoing effects. What is the reason for a clause like this? Monies paid out in an insurance claim come from the premiums that customers pay. If customers take no action to prevent loss or damage, or to mitigate the amount of loss or damage, it is not too difficult to imagine the effect this could have on premiums. So, what exactly is "reasonable care" and what affect, if any, will it have on you? Insurance companies talk about reasonable care, and other governmental institutions, the term pretty much speaks for itself. So, when completing your home insurance application, for example, you should take reasonable care that you complete it correctly. If it comes to light further down the line that you have omitted pertinent information on your insurance application, such as a previous claim, this could potentially render your coverage invalid. There are responsibilities that customers have, so be sure you know what they are, and how to fulfill them during the term of the policy. Having your coverage be termed invalid is the possible alternative if you choose to not honor your part of the policy's stipulations. When something like this occurs, the payments during a claim are often invalidated. To ensure that your coverage is always valid, adhere to your responsibilities during the term. Do not neglect your obligations, and be sure to use reasonable care. Reasonable care is a part of all insurance coverage terms, and everyone must abide by this. Risks or damages are to be reduced as much as possible, it's your responsibility. For clarification, this includes: Properly heating a home in the cold winter months is your obligation, so that there is not damage caused by bursting pipes. Could most claims refused by insurance companies then? No. In reality, it means insurers can exclude very few claims under this condition. We have to look at what the term 'reasonable' actually means. In cases like this, there are very clear stipulations that the company must follow. Surprisingly, there are a great deal of people that become reckless with their property that is insured, not knowing about their particular responsibilities covered by the policy. This is obviously not the way to behave. Reasonable care is your responsibility. Take reasonable care when completing your home insurance application and then, once you are covered, take steps to prevent loss or damage. Your need for a claim will be less likely, and your home and property will have increased protection. If you want to know more about Saskatchewan home insurance, or if you're renting visit renter insurance.
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