Duty to Mitigate
Definition:
A homeowner’s responsibility to prevent further damage after a loss.
Explanation:
Insurance policies require homeowners to take reasonable steps to limit damage, such as covering a damaged roof with a tarp or shutting off water after a leak. Failure to mitigate can reduce claim payouts.
Example:
If a storm breaks a window, you must cover it with plywood. If you don’t and rain ruins the carpet, the insurer may not cover that additional damage.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.