Colorado CDL Practice Test

After discovering serious water damage, what should an insured normally do first in relation to the insurer?

Admit legal liability to any third party immediately Dispose of all damaged property before taking any evidence Notify the insurer promptly in accordance with the policy's claims condition Wait until every repair has been completed before reporting

Correct Answer:

Notify the insurer promptly in accordance with the policy's claims condition

Explanation:

Policies normally require prompt notification of claims or circumstances. Early notice allows the insurer to investigate, advise on mitigation and protect recovery rights.

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