Waiver of Inventory Clause
Definition - What does Waiver of Inventory Clause mean?
A waiver of inventory clause is a clause in an insurance policy that indicates that the insurance company will not force 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 require the policyholder to list every item lost in the flood if the policy had a waiver of inventory.
Insuranceopedia explains Waiver of Inventory Clause
Waiver of inventory clauses are commonly used when the total value of the insured items is on the smaller side. Without a waiver of inventory clause, a policyholder would have to provide a detailed list of every item lost in order to get reimbursement for a claim. However, an insurer may simply choose to have a waiver of inventory clause and cover unscheduled property up to $5,000. This prevents both the policy holder and the insurer from having to go through the tedious work of identifying and evaluating every lost item.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.