Waiver Of Inventory Clause
What Does Waiver Of Inventory Clause Mean?
A waiver of inventory clause in an insurance policy specifies that the insurance company will not require the policyholder to provide a written inventory of items lost in the event of a claim. For example, if a house is destroyed by a flood, the flood insurance company would not ask the policyholder to list every item lost, provided the policy includes a waiver of inventory clause.
Insuranceopedia Explains Waiver Of Inventory Clause
Waiver of inventory clauses are typically included in policies covering items of relatively low total value. Without this clause, policyholders must provide a detailed list of every lost item to receive reimbursement for a claim. However, insurers may opt to include a waiver of inventory clause, allowing them to cover unscheduled property up to a specified limit, such as $5,000. This simplifies the claims process, saving both the policyholder and the insurer from the time-consuming task of identifying and assessing each lost item.
