Shouldn’t You Already Have That on File? Why Cooperation May be the Key to Your Policy

The worst has happened; there’s been a fire in your home, or a windstorm damaged the roof and walls, or some other horrific thing has occurred and rendered your house unlivable. So you put your claim in to the insurance company, who turns around and asks for a tremendous amount of paperwork – paperwork that you are sure they already have on file in their offices somewhere. Your copies, however, are hard to find and covered in debris. Do you really need to keep filling out these forms and submitting that documentation? Do you really need to let your claims adjuster keep coming back to the house, over and over again, to take pictures or inspect the property?

The short answer is yes, you do. In your homeowners’ policy, you have something called a “cooperation clause,” written in rather general language, which states that policyholders must cooperate with insurers in the event that the policyholder makes a claim. The American Bar Association uses this example of a basic cooperation clause:

“The [Insurer] and the Insured persons agree to provide the Underwriter with all information, assistance and cooperation which the [Insurer] reasonably requests and agree that in the event of a Claim the Company and the Insured Persons will do nothing that shall prejudice the [Insurer’s] position or its potential or actual rights of recovery” (emphasis ours).”

The words “reasonably requests” are important, as the ABA recognizes “Over the years, courts that have interpreted the cooperation clause have developed differing standards.” What is reasonable to one judge may not be so to another.

What this means for policyholders

The clause is purposely broad, because the insurance company wants to make sure they protect themselves in the event of a dispute. Still, there are limits to what your claims adjuster (or other agents or employees) can request. For example, it is probably not reasonable to meet them at your property at 2:00am for an inspection. It is reasonable, however, to ask you to submit to an Examination Under Oath.

In sum, your claims adjuster may ask you to submit any relevant documentation or information that is material to your loss. Attempts to block a claim based on your refusal to “cooperate,” even if said cooperation is clearly beyond reason, could be an act of bad faith on behalf of your insurer. Every claim is different, as are the circumstances surrounding that claim, so there’s no definitive answer that says, “Yes, this is reasonable” or “No, you’re acting in bad faith.” That is why working with an experienced Tennessee bad faith attorney can help you through the process.

Insurance companies should not shouldn’t be allowed to deny claims while citing the cooperation clause, when their requests have been unreasonable. McWherter Scott & Bobbitt helps protect policyholders facing disputes on their claims. To make an appointment with a skilled Tennessee bad faith attorney, please contact Brandon McWherter, Clint Scott, or one of our offices in Nashville, Chattanooga, Memphis, Jackson or Knoxville by calling 731-664-1340 or filling out our contact form.