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.