You purchased a home insurance policy and spent hundreds of dollars on premiums because you want peace of mind in case something bad happens.
Imagine how you would feel if your insurance company denies your claim after your home is damaged or ruined? Can that really happen?
Unfortunately, insurers deny many homeowners insurance claims for various reasons. To avoid this from happening to you, understand more about home insurance and how to file a claim successfully.
Many consumers buy home insurance without really giving it a lot of thought. In most cases, they look at the price, choose a policy type, and then forget about it until they need to make a claim.
Actually, this is the worst thing that any homeowner can do. You bought home insurance to protect you from risks with your most expensive investment – your home. You need to know what your home insurance actually covers.
In insurance, peril is a term used to define or name risks that are included in a policy. Home insurance policies are exact in inclusions and exclusions. Your policy would specify the perils you are covered for and also exclusions to your coverage.
If you don’t know exactly what your coverage is, take out your home insurance policy now and check the fine print. A home insurance policy has the following important parts:
As you can see, a home insurance policy provides cover for a number of things. Each category would have a limit. You need to pay special attention to the Cover for Dwelling and Cover for Contents.
Your policy should have a Declaration Page which provides all pertinent information including your policy number, period of coverage, coverage type and limits of cover, and your deductible amount.
Read the declaration page carefully and check for any riders you may have on your policy. Riders are additional coverage purchased to expand cover.
Your home insurance policy is a contract between you and your insurance company. For most people, they think that their only obligation to fulfill this contract is to pay the premiums. Unfortunately, there’s more to it than just your payments.
There are other stipulations in the contract that a homeowner must fulfill. Failure to comply with these stipulations could result in a denial of a claim.
Below are some of the most common reasons why a home insurance claim is denied.
Failure to provide the current address can result in denial. Whenever you move, you need to inform your insurance company.
Many people do not really understand their home insurance policy fully. It is important to know what your coverage includes and for how much. On many occasions, homeowners think they are covered for a specific situation only to find out that they are not (ex: damage during a move, water damage, etc).
Most people file insurance claims to recover their losses covered by their policy. However, some file claims using fraudulent information to make a profit. Claims are duly investigated by insurance companies. Fraudulent claims are not only denied; they can also cause legal issues.
If the insurer investigates your claim and determines that the problem was caused by your negligence, your claim can be denied. For example, claiming cost for a damaged roof can be denied if it is determined that it was caused by a pre-existing problem which you failed to correct early.
Your policy details the limits of liability on all items related to your home insurance. These items (jewelry, art, rare coins, etc.) have specific limits. If you make a claim for a higher amount allowed by your insurance, your claim can be denied entirely.
If you file a home insurance claim and it is denied, you would naturally feel upset. Your home insurance is useless after all and you just wasted your money on something that doesn’t do you any good.
It is understandable that you would feel that way. But please remember that without home insurance, you would be in a much worse situation if something really bad happens, like your home is destroyed by fire, or a burglar carts away all your possessions.
Further, remember that the insurance company is a business and they make a habit of denying claims to avoid footing the bill. If you feel you were treated unfairly by your insurer, take stock of the situation and take the following steps. You may still be able to get a positive outcome.
You don’t have to be stuck with a home insurance that is not adequate to your risks. Don’t renew home insurance without reviewing your coverage or renegotiating your rate with your insurer.
It is advisable to educate yourself about home insurance to get affordable but adequate coverage. Below are ways you can simplify the process.
Insurance rates vary significantly from one insurance company to another. You can get your quote free of charge by taking 2 minutes to fill-out our quick online form.
Insurance companies offer different types of policies; they are not all the same. Make sure to compare apples to apples and always review coverage levels and deductibles.
Insurance agents and brokers (our partners) will be very happy to help with your home insurance needs. They are connected with over 20 insurance companies and can offer you insurance products to suit your needs.
Request for your free home insurance quote to get protection from risks to your home.
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