Last week I discussed the carrier's obligation to fully investigate a
reported loss. This week, I want to discuss an interesting issue that
arises during sinkhole losses related to the insured's duty to
mitigate. In the event of a sinkhole loss, the insured has an
obligation to enter into a subsurface repair contract to remediate the
property. Some carriers wrongfully issue a Notice of Nonrenewal if the
insured does not immediately enter such a contract. The issue that I
want to discuss is whether an insured is failing to mitigate his or her
damages when contesting the carrier's repair recommendations.
