What action must a policyholder take regarding changes in their property’s risk?

A policyholder is required to inform their insurer about any changes in their property’s risk to ensure that the coverage remains adequate and that the policy terms are based on the current situation. This duty of disclosure is important because changes in risk can affect the likelihood of a claim occurring and the insurer's willingness to provide coverage under the existing terms.

For instance, if a homeowner converts their property into a rental unit or makes significant renovations, these changes could increase the potential for damage or liability, which should be communicated to the insurer. Failing to do so could result in denial of coverage when a claim arises due to the risk not being properly assessed or underwritten at the time of the policy’s issuance.

In contrast, contacting an attorney, increasing the deductible, or delaying any action until renewal does not address the immediate need to keep the insurance provider informed about risk changes, which is crucial for maintaining appropriate coverage.