When you file a claim against your homeowners’ insurance policy, you normally have a good reason to do so. However, there are times when claims are denied, and it is up to you to figure out why. It may be an error in the paperwork, or there could be something in the policy that you didn’t realize was not covered. It’s up to you to know and understand what your policy covers and what it does not. If you receive a claim denial, you need to find out why and then decide how to proceed from there.
Why Claims Are Denied
Claims can be denied for different reasons. Some may be more apparent than others, but either way, it will be up to you to investigate why the insurance company chose to deny your claim. The following are common reasons;
- Negligence – Poor property maintenance
- Non-cover peril – An event that is considered to be an exclusion that is not covered
- Insufficient coverage – Not enough coverage in place to sufficient payout for the amount of damage that is claimed
- Not filing a claim in a timely fashion – Waiting to file your claim is one of the biggest reasons why claims are eventually denied
Whether you are filing on an exclusion or you don’t have enough coverage to sufficiently pay for your claim, a denial can be just as traumatizing as a damaging event. It’s important to learn why the claim was denied and what you may be able to do to reverse the decision.
Disputing a Denied Homeowners Insurance Claim
If your claim is denied, you may have a few options to choose from. First, it’s always a good idea to consider an appeal to ensure that there wasn’t a misunderstanding or a glitch in the paperwork. When you prepare to dispute a denial, you will need to go over your policy thoroughly. Also, take a closer look at your denial letter. Gather all of your documentation to substantiate your claims. If you still think the denial of your claim is a mistake, you can file an appeal. If the appeal process is not moving forward, you may have the option to hire a public claims adjuster to help support your claim.
Avoiding a Denial of Your Claim
There are many ways to avoid having a claim denied. First and foremost, study your policy very carefully. Read over the fine print and make a note of any exclusions. Go over your policy at least twice a year or whenever changes are made to your home or living arrangements. Anytime a life event changes your living arrangements, you will need to re-evaluate your coverage. Create an inventory of your home and create a list of maintenance tasks. Update each one often and always keep every aspect of your home in good working order. If you need to, update or decrease your coverage as needed. To get the best coverage possible, you will need to shop around for the best coverage.
When your home insurance claim is denied, it can be very upsetting. But, don’t give up trying! Having questions is natural after a denial. You can lower your risk of denial by taking the right precautions. Call our agents at Jack Stone Insurance Agency. We have many of the answers you are looking for and will guide you through the process. Contact us today to schedule an appointment to re-evaluate your homeowners’ insurance policy, and see if any changes need to be made.