REASONS FOR HOME INSURANCE CLAIMS TO BE DENIED
These are some of the common reasons to deny an insurance claim.
ILLEGAL CRIMINAL ACTIVITY:
If your home was being used for illegal criminal activity, then your insurance company may deny your claim. If you are using your home’s kitchen to manufacture drugs, for example, and you start a fire that burns down your home, then your insurer may deny your claim.
FRAUD:
Many insurance claims get denied due to fraud – or suspected fraud. Policyholders who get caught committing fraud will have their claims denied. They could also face jail time, fines, and other penalties.
FAILURE TO MAINTAIN YOUR HOME:
As a policyholder, you are required to maintain your home. Maintenance is an expected part of home ownership. Insurance covers unexpected things like fires: it doesn’t cover expected things like maintenance. If you failed to maintain your home or keep your house in good repair, then your insurer could deny your claim.
LEAVING THE HOUSE FOR EXTENDED PERIODS:
Most home insurance policies require regular check-ins. If you leave town on vacation and don’t have someone check your property regularly, then your claim could be denied.
LACK OF EVIDENCE:
MANY INSURANCE CLAIMS ARE DENIED DUE TO LACK OF EVIDENCE. YOU FAILED TO PROVIDE SUFFICIENT EVIDENCE OF THE COVERED EVENT, FOR EXAMPLE, OR HAD NO DOCUMENTATION PROVING VALUE.
DELAY IN FILING THE CLAIM:
Some claims are denied because you took too long to file the claim. You waited 30 days before reporting the damage, for example. The sooner you file the claim, the less likely your claim will be denied.
EXCLUSIONS:
ALL INSURANCE POLICIES HAVE EXCLUSIONS. MANY POLICIES EXCLUDE FLOOD DAMAGE, FOR EXAMPLE. YOUR PROPERTY MIGHT HAVE LEGITIMATE DAMAGE – BUT IF THE DAMAGE WAS CAUSED BY AN EXCLUDED EVENT, THEN IT MAY NOT BE COVERED.