Making a home insurance claim can be a long, complex process. Whether you’re dealing with a water leak or claiming for fire damage, the damage to the home and everything in it can be extensive and even irreparable. For this reason, having an insurance claim denied can be a very costly affair in an already devastating experience.
Knowing some of the reasons why insurance claims are rejected can help you avoid any actions that could lead to your own home insurance claim being denied. Here are some of the most common reasons why insurance claims are rejected – and how to avoid any costly mistakes.
Incorrect information was given
When communicating with your insurance company or their insurance adjuster, it is important to choose your words carefully. This can be difficult when you’re going through such an emotional and stressful experience, but any incorrect information could be used to invalidate your claim. Make sure you only give accurate information; do not over exaggerate any details and try to be as specific as you can.
Information was withheld
It is important to be truthful when you first apply for home insurance. Any information withheld – even if it’s an honest mistake – can be used to invalidate a future claim, making your home insurance redundant. Therefore it’s important to be very careful and disclose anything that could invalidate your insurance policy – such as previous claims or County Court Judgements – when you first take out your policy.
Your home insurance policy will outline any scenarios that could invalidate a claim. Make sure you read the small print and familiarise yourself with any clauses that could affect you so that it doesn’t cost you further down the line. This could include things such as not activating your house alarm while you are out, leaving valuables on show or not getting your boiler serviced annually. You should also check your insurance policy to make sure your locks and other security measures meet the insurance company’s requirements.
If your home is not ‘well maintained’ and kept in ‘good condition’, you’re only giving your insurance company reason to reject a claim. Although both terms are vague, nearly every home insurance policy will require a reasonable level of maintenance to avoid preventable claims. Make sure you take any necessary measures to protect your home and carry out maintenance when needed.
The cover is insufficient
If you do not take out adequate cover for your property and its contents, your home insurance claim could be rejected. Even if your claim is accepted, it might not cover the entire cost to repair or rebuild your property and you will be out of pocket. Make sure you consider all the potential costs when taking out your policy so that you have adequate cover if the worst should happen.
If you’re dealing with a large home insurance claim and want to make sure you receive the compensation you are entitled to, our Loss Assessor services can help. Get in touch for more information on how we can help throughout the entire claims process.