When Does the Home Insurance Policy Get Denied?
With many other dreams, owning a home is also a dream of many of us. We buy or build a home from our hard-earned money and hence any damage to it can be frustrating and stressful. However, if you have safeguarded your home and its contents with a home insurance policy, then you can take a sigh of relief. But, have you ever thought that what will happen if your home insurance claim is denied? Well, this can be the situation with anyone and there can be many reasons for it. Today, we are going to discuss the main reasons due to which the insurance claim for your home insurance policy is denied.
Reasons Why Home Insurance Claim is Denied
- Delay in Filing the Home Insurance Claim: The insurance providers need you to inform them instantly about the property loss. However, if you have missed the deadline for filing the claim, then the insurance provider may deny your claim. Always remember that the guidelines for informing your insurance provider are really sensitive and should be followed sincerely.
- Providing False Statement: After the damage to your home, the insurance provider sends its surveyor to do a thorough investigation of it. If the surveyor finds something questionable, then there can be a problem for you. If you happen to make any misleading or false statement for the claim, then even a valid home insurance claim can be denied. So, it is always suggested to stay honest and provide accurate information to your insurance provider.
- Lack of Evidence: The home insurance providers need substantial evidence in support of the claim. If you fail to do so, your policy can get denied. You can get the full compensation against your home insurance claim only when you provide all the necessary documents and the evidence that is needed by your insurer. It is suggested to take all the required photographs of the spot and document the damages to your home in detail. So, you will be able to prove your case accurately.
- Not Paying the Premiums: Even though the premiums of your home insurance policy take a big chunk from your household income, but you have to pay them on time to prevent your claim from being denied. It is not with one, but all the insurance providers are strict with their timely premium payment. So it is suggested to make sure that you have funds ready to pay the premium of your home insurance policy.
- Missing the Preventive Measures At the Time Of Loss: If your home or property is facing any loss or damage, you are needed to take all the required preventive measures for avoiding further damage. However, if your home or property is left exposed to the losses, then it may lead to claim denial.
- Lack of Disclosure: If your property has any underlying problems that you have not disclosed to your insurance provider while purchasing the policy, then there are very high chances that your claim can get denied. You can take the basic measures to safeguard your property and prevent further damages. In addition to this, it is always good to disclose all the necessary information to your insurance provider.
- The Damage Comes Under Exclusion of Your Home Insurance Policy: There are several claims of property that are in dispute as the insurance provider argues that the damage comes under the exclusions part of your policy. Some perils need separate insurance plans for coverage such as damage due to flood. So, if your house is damaged due to any such perils then you can expect the claim to be denied from your insurance provider. It is to be noted that liability can as well muddle up the claims of home insurance. For example, if the electrician has not done electric wiring properly in your home and this has caused damage, then your home insurance policy will not cover it instead the electrician is held liable for all the damages. Therefore, it is suggested to know the exclusions of your home insurance policy beforehand.
- Intentional Damage: If the loss or damage to your home or property is considered intentional, criminal, or because of your negligence, then there are high chances of claim denials.
- Damage Due to Wear and Tear: The homes are built to last, however, this does not mean that they are will be in the same state for ages instead of time a house also deteriorates. Sometimes it can be an old roof of your house that requires repair and other times it can be rusty pipes that need replacement. However, a home insurance policy does not provide coverage for losses that come as a result of day to day wear and tear.
The Final Words!
If you are also among those whose home insurance claim is denied, then check the aforementioned reasons first, if you find any of these relevant, then the reason for denial can be the same. However, if you are unable to understand the reason, then you can email your insurance provider and ask for a written explanation for the same. This will give you a clear idea about the reason due to which your claim is denied.