After damage to insured property, what is a necessary action the policyholder must take?

Taking appropriate steps to minimize the loss is an essential action that the policyholder must undertake after damage to insured property. This duty is often described in insurance policies as a requirement to "mitigate" damages, which means that the insured must take reasonable steps to prevent additional loss or damage from occurring after the initial incident.

For example, if a leak occurs in a building, the policyholder should act to stop the leak (such as turning off the water supply or using temporary measures to contain the water) to avoid further damage to the property or its contents. Failing to take such measures could result in a situation where the insurer may reduce the claim payment on the basis that the policyholder did not fulfill their obligation to minimize the loss.

In contrast, while appointing a loss adjustor, arranging repairs, or notifying the police may be important steps in the claims process, they do not directly address the immediate need to prevent further damage. Thus, minimizing loss is prioritized as a proactive and key responsibility of the policyholder following an incident.