South Carolina Personal Lines Practice Exam

If a loss occurs, which of the following actions is NOT required from the insured with a homeowners policy?

1. Protect property from further damage and keep records of repair expenses

2. Arrange for an appraisal by an unbiased third party

3. Provide the insurer with prompt notice of the loss

4. Notify the police if a loss is caused by theft

The correct answer is: Arrange for an appraisal by an unbiased third party

In the context of a homeowners policy, the insured is required to take several actions when a loss occurs to ensure that the claim process is smooth and efficient. Among these actions, arranging for an appraisal by an unbiased third party is not a required step for the insured. Typically, homeowners insurance policies mandate that the insured must protect their property from further damage, keep records of repair expenses, provide prompt notice to the insurer regarding the loss, and notify the police if the loss involves theft. These actions are essential for the insurer to assess the claim accurately and determine the coverage available. On the other hand, the need for an appraisal generally arises under specific circumstances, such as disputing the amount of damage or settlement offered by the insurer. This process is not automatically required of the insured following a loss. Therefore, the selection of arranging for an appraisal as the non-mandatory action appropriately highlights the responsibilities outlined in a homeowners policy.