If a claimant holds a valid claim with multiple insurers, what guideline must they follow for initial recovery actions?

When a claimant holds a valid claim with multiple insurers, the guideline that they must follow typically involves exhausting coverage from the location of the insured's residence. This principle is rooted in the idea that claims should first be addressed by the insurer that is most closely associated with the insured's primary interest or the risks where the property or liability occurs.

This ensures that the coverage that is specifically designed to handle risks relevant to the insured’s residence is utilized first. It helps streamline the claims process and ensures that claims are handled logically and fairly, particularly in multi-line coverage situations or where overlapping policies exist. This guideline effectively prevents potential disputes between insurers regarding liability and creates an orderly approach to claims handling.

Prioritizing claims based on policy inception dates, choosing insurers at discretion, or requiring mediation before filing are generally not established practices in the context of making initial recovery actions in claims involving multiple insurers. Each of those options may present logistical challenges or contradict standardized claims handling practices in the insurance industry.