What property should be inventoried in a loss?
Coverage Q&A: An insured's duty to inventory can apply to more than just personal property, depending on the policy.
Analysis brought to you by FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to learn how to find answers to YOUR coverage questions — click here!
Question: In Form CP 00 17 06 07, Loss Conditions (5), does the duty to inventory apply to property other than personal property?
It would not be possible to inventory damaged and undamaged components of a building, for example, in a large loss.
Many thanks.
— Florida Subscriber
Answer: In response to your question restated below, the Loss Condition (5) states, “at our request, give us complete inventories of the damaged and undamaged property…” It may be that you need to obtain a clarified request from the carrier requesting what specific inventory they need to assess the loss, but at a minimum, the insured needs to provide an inventory of all partially damaged or completely damaged property that would be covered by the policy.
As an aside, if only personal property is covered by the policy, then that is all that should be inventoried, but if the policy covers buildings, then they should be included in the inventory, but the insurer should be willing to clarify.
Related: