Understanding Mitigation of Damages in Insurance Claims

What is Mitigation of Damages?

When you think about insurance, the first thing that comes to mind might be claims and payouts. But there’s a layer beneath that: the duty to mitigate. Ever heard the phrase, "You need to take care of your property like it’s your own?" Well, that applies here too.

The Basics of Mitigation

Mitigation of damages is a legal requirement that says once a loss occurs, you can’t just sit back and wait for the insurance adjuster to show up—no sir! You’re expected to take reasonable steps to prevent additional loss. This could mean quickly boarding up broken windows after a storm or putting a tarp over a damaged roof to keep rainwater from further ruining the interior of your home.

Why Should You Care?

You know what? Taking these steps isn’t just about being a good property owner—it’s also about protecting your wallet. If you ignore an issue, the insurance company might point fingers at you later, claiming you didn’t do enough to prevent further damage. It's crucial to engage proactively.

What Does It Take to Mitigate?

So, what does “reasonable steps” look like? Generally speaking, it boils down to anything that could stop a minor leak from turning into a full-blown disaster. Here’s a handy list of what you can do immediately:

• Board Up Openings: If a storm has taken out your windows or doors, get some wood and secure those openings to protect against the elements.

• Control Water Leaks: If you've got a leaky pipe, patching it up temporarily is vital. Even a few towels won’t hurt, right?

• Document Everything: From photos to notes, keeping records can be a lifesaver later on. You might need them to prove your good faith efforts to the insurance company.

These actions show that you’re serious about protecting your property and minimizing potential claims.

What NOT to Do

On the flip side, there are things you should absolutely steer clear of when it comes to mitigating damage.

• Complete Repair of Property: Sometimes people mix up mitigation and repair. But going all-in to fix everything might not be necessary right away and could just cause trouble down the line.

• Filing a Lawsuit: If you’re thinking about filing a lawsuit against someone, that’s not mitigation. Lawsuits are about compensation, not containment.

• Neglecting Further Issues: The worst thing you can do? Just sit on your hands and wait for the adjuster. That’ll only backfire.

Wrapping It Up

In essence, mitigation of damages emphasizes that it’s not just about the insurance claim itself—it’s about how you, the insured, tackle the aftermath of a covered event. By taking reasonable steps to protect your property, you’re helping not only yourself but also setting the stage for a smoother claims process in the future. Think of it as a property owner's obligation to keep the playing field level with their insurer.

So, as you prepare for the Hawaii Insurance Adjuster License Exam—or just want to learn more about insurance obligations—remember: mitigation of damages is your friend. Act wisely, act swiftly, and your property and your bank account will thank you later!