If you’ve recently filed a homeowners insurance claim, you may be extremely frustrated when the claim was not approved by your insurance company. Why does this happen? Is there anything that can be done about it? These and other important questions are addressed in the following article on why your homeowners insurance claim may be denied and what to do about it.
Your policy doesn’t cover the damage
If you have had a homeowner’s insurance claim denied, then you are not alone. Insurance companies are quick to deny claims when they think that the customer is at fault for the damage. That being said, there are a few ways that you can make sure that your homeowners insurance claim doesn’t get rejected in the first place: If you’re repairing or rebuilding after a fire or other disaster, get an engineer’s report before beginning construction. A homeowner should also take care of safety hazards immediately after they occur (e.g., trip hazards, unsafe wiring) and contact their homeowners insurer to make sure these items are included on their policy.
So now you know how to avoid having your homeowners insurance claim denied!
You didn’t have enough coverage
One of the common reasons for homeowners insurance claims being denied is a lack of coverage for the specific type of damage in question. For example, if a tree falls on your roof but you have only general coverage, then the company would most likely deny the claim because you don’t have enough coverage for that particular incident. The same goes for earthquakes, floods or any other disaster that is not covered by your policy. The solution? Speak with an agent from your homeowners insurance company to find out what kind of coverage you need before purchasing a policy – they’ll be able to guide you in the right direction and ensure that you are fully protected in case anything ever happens.
You didn’t get the proper permits
It’s not always easy to know when a homeowner’s insurance company is going to homeowners insurance claim denied for coverage, but there are some common reasons that an insurer might decide not to pay out on the claim:
– The damage was caused by an act of war, flood or other natural disaster;
– The damage was caused by an inherent defect in the home or its components;
– The homeowner failed to maintain or repair the home so that subsequent damage could have been prevented with this maintenance;
– The loss was caused by something expressly excluded in the policy terms;
– The property is located in a high risk area such as earthquake zones or wildfire prone areas.
You caused the damage
It is important to know the reasons why homeowners insurance claim denied are sometimes denied so that you can avoid the issue in the future. First, a homeowner’s policy will not cover losses due to natural disasters such as earthquakes, floods, or fires unless specifically noted in their policy. Second, if you caused the damage and did not disclose this information before filing a claim with your home insurer, then it is likely that your claim will be denied because of fraud or misrepresentation of facts on the part of the homeowner who filed. Finally, if you intentionally damaged property in order to file a homeowners insurance claim, then many insurers will refuse coverage for any subsequent damages related to that event.
The damage isn’t covered by your policy
A homeowners insurance claim will be denied if the damage isn’t covered by the policy. That can happen for a number of reasons, including if you don’t tell the insurer about something that’s not listed on your property’s special features or exclusions. For example, you might not have mentioned that there was a swimming pool in the backyard when you bought the policy, or that there are hazardous materials stored in a shed on the property. The company would only cover damages caused by things specifically listed on the policy, so these sorts of omissions mean that they’ll homeowners insurance claim denied for any kind of damage related to them.
You missed the filing deadline
If you’re filing a homeowner’s insurance claim, it’s important that you contact the company as soon as possible after the incident has occurred so they can start investigating the cause and gathering evidence in order to process your claim. If you fail to file within the required time period, many insurers will deny your coverage. For this reason, make sure you have documentation of any conversations with the insurer or their representative for submitting a homeowners’ insurance claim. This can include copies of emails, letters, or phone records of conversations with an agent or customer service representative from the insurer. Make sure all your information is accurate before filling out any forms. Also, if you are still waiting on reports or other documents from your homeowners insurance carrier, write awaiting report where appropriate on the form until you receive them and can provide them with full detail. Remember: every homeowner should always have home insurance; even if yours is considered adequate for replacement costs, there are always expenses like deductibles that must be paid by the insured party which aren’t covered by property insurance (e.g., contents). A homeowner’s policy typically covers damages caused by things like natural disasters such as fire, earthquakes, and hurricanes.
The insurance company thinks the damage is pre-existing
If you have a homeowners insurance claim denied for damage caused by an incident that occurred during the policy period, but the company denies coverage because they believe the damage was pre-existing, there are a few things you can do. You should first consult with your agent or broker to find out why the company believes the damage is pre-existing. Often, this type of denial is because the homeowner’s inspector missed something when they came out to inspect your property before or after purchase. If this is not the case, then you will need to submit photos of how things were before and after (or any other documentation) in order to appeal the decision with underwriters who may be able to provide more clarity on whether or not coverage will apply in this circumstance.