Who can invoke the Optional Loss Settlement clauses under a Homeowners Policy?

The Optional Loss Settlement clauses in a Homeowners Policy can be invoked by the insured. These clauses typically provide the insured with the option to choose how a loss will be settled, which may include different methods of valuation, such as replacement cost versus actual cash value. The insured has the right to decide the best course of action that aligns with their needs following a loss event.

The insurer, while they play a crucial role in administering the policy and settling claims, cannot invoke these clauses on behalf of the policyholder. The mortgage holder has an interest in ensuring that the property is adequately insured, but they are not the party entitled to make decisions regarding settlement options under the policy. Brokers facilitate the placement of insurance and assist clients, but they do not have the authority to invoke clauses on behalf of the insured. Hence, the insured is the party that has the explicit power to invoke these clauses and determine how they want potential claims to be handled.