When Sally's dog bites a passing pedestrian who stops to pet it, what duty does Sally have regarding her homeowners policy?

• A. Notify the insurer in writing.
• B. Notify the police and the insurer.
• C. Pay the claim out of pocket first.
• D. Ignore the incident unless a lawsuit is filed.

Answer: (A)

When a liability incident could lead to a claim, the insured must promptly notify the insurer, usually in writing, to preserve rights under the policy and to trigger the insurer’s duty to defend and pay covered losses. In this dog-bite situation, the pedestrian’s injuries could be a covered bodily injury under the homeowners policy, so sending written notice starts the claims process and allows the insurer to investigate, determine coverage, and manage any settlement or defense.

Notifying the police isn't typically required by the homeowners policy unless there are separate legal obligations or the incident involves criminal activity; the key duty here is to inform the insurer so coverage can be evaluated and applied. Paying the claim out of pocket first isn't necessary and could risk losing coverage or insights the insurer would provide about fault, defense, and settlement options. Ignoring the incident until a lawsuit is filed also undermines the policy's notice requirements and cooperation duties, which are designed to address claims early and appropriately.