After a commercial or residential property loss has been reported to the insurance company, a claims adjuster is assigned and immediately begins investigating coverage. One of the most common requests we see within days of the loss is for a recorded statement from the policyholder. While it may appear like a harmless request or even a necessary step in the process, recorded statements are the insurance company’s secret weapon.
The request will come at a time when the insured is most vulnerable, their guard is down, and they are eager to return home or to their business. For these or countless other reasons, an insured can unknowingly provide inconsistent or incomplete answers during the recording which are later used by the insurance company to either delay, deny or reduce legitimate claims.
Always read your policy. Does it require you to provide a recorded statement? In most cases, the answer will be no. While policyholders have an obligation to cooperate in the investigation, any requests for a recorded statement, if not outlined within the policy, can be declined regardless of how the claims adjuster frames the request.
Most policies do permit the insurance company to request attendance at an Examination Under Oath (EUO). Recorded statements typically occur at the insured’s home or a coffee shop but EUOs take place in a controlled environment at a court reporter’s office and a transcript is generated. The insured is entitled to have a lawyer present at EUOs and the insurance company should be telling its insured of this right.
When faced with a request for a recorded statement or an EUO, an insured should speak to a lawyer and if necessary have one present when providing any type of recorded statement to ensure legal rights are protected.
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