Texas Property and Casualty License Practice Exam

Which statement accurately describes the duty of the insured regarding property after a loss?

1. They must protect the property from further damage

2. They can do nothing until the inspector arrives

3. They should deny any claims made against them

4. They must collect statements from witnesses

The correct answer is: They must protect the property from further damage

The responsibility of the insured after experiencing a loss is to take reasonable steps to protect the property from additional damage. This duty is crucial because it minimizes further loss and helps maintain the insurer's interests. For instance, if a home suffers water damage, the insured should take action to stop the water from spreading, such as turning off the main supply or performing temporary repairs. This requirement is commonly outlined in insurance policies to ensure that the insured is proactive in mitigating damages. Other sentiments such as doing nothing until an inspector arrives, denying claims against them, or collecting witness statements do not align with the insured's responsibilities after a loss. Each of these options implies either inaction or trivializing claims processes that do not serve to manage the primary concern of protecting the property and ensuring that any potential claims can be accurately assessed and processed. Thus, the clear expectation is for the insured to act responsibly and promptly to limit further damages.