Dealing with a major disaster or damage to your home can be extremely stressful and frustrating. Plus, if you find out that your insurance claim has been denied, you’ll probably be terrified thinking about the financial burden. In order to avoid such situations, we bring you the top reasons why home insurance claims are denied and ways to prevent this possibility.
1. Delay in Filing the Claim
Insurance companies require you to promptly inform them about any loss of your property. If you miss an important deadline regarding filing the claim, the company can deny paying for your damages. Remember that there are sensitive guidelines for the documentation of the claim, and they must be sincerely followed.
2. Lack of Evidence
Your home insurance company will require substantial evidence to support your claim. Failure to do so can result in your policy getting denied or delayed. You will only get the full compensation that you deserve when you can present all the required documents and evidence required by your insurer. Take all necessary photographs in the aftermath and accurately document the damage in a detailed manner so that you can prove your case to the company.
3. Giving False Statements
After a disaster or damage, the insurance company will send their adjuster to thoroughly investigate your claim. In case they find anything questionable or suspicious in your claim or in the coverage application, you might be in trouble. If you make any misleading or false statements on your claim, even a valid claim might get denied. It is best to stay honest and give factual and accurate information to your company.
4. Non-payment of Premiums
Even though your home insurance premiums might take up a big chunk of your household budgets, you need to pay them on time to avoid getting your claims denied. Every insurance company is strict about timely payments so make sure you have the funds ready for the payment due date.
5. Missing out on Preventive Measures During a Loss
If your property is suffering from any damage or loss, you are required to take the necessary preventive measures to avoid further damage. If your property is left exposed to an additional loss, it can lead to a denial.
6. Your Damage is Under Exclusion
A lot of property claims are in dispute because your insurer might argue that the damage is part of an exclusion in your policy. Many times, big insurance companies might be aggressive when they’re trying to apply policy exclusions to deny your claims. It is best to know beforehand what’s included and excluded in your home insurance.
7. Lack of Disclosure
If there were any underlying problems in your property that were not disclosed to your insurance company at the time of policy purchase, there is a high chance that your claim might get denied. You can take basic safeguard measures to prevent damages and always ensure you disclose all necessary information to your insurer.
8. Intentional Damage
If the loss or damage to your property is considered intentional, negligent or criminal, there is a possibility of claim denials.
If your claim is denied, ask your company for a written explanation, detailing the reasons why your claim is refused. You can also contact the Alberta Superintendent of Insurance if the company denies a legitimate claim. Canadian insurance industry is well-regulated and can charge hefty penalties to companies if they are found guilty.