5 Reasons Why Your Home Insurance Claim Might Be Denied

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Florida Homeowners Insurance Claim Advocate

If you’ve been home insurance claim denied, it can be frustrating and lead to feelings of confusion and doubt. You may wonder why your claim was rejected or if you’ll be able to get coverage in the future. Here are five reasons why your home insurance claim might have been denied that you should know about if you plan on buying home insurance in the future.

1) The damage was not caused by an act of god

Damage caused by an act of god is not typically covered under a standard homeowner’s insurance policy. Homeowner’s insurance policies cover damage due to things like fire, hail, and falling trees. They typically don’t cover damages caused by floods or landslides – but they do cover floods or landslides that are the result of an act of god. For example, if there was an earthquake in your town that caused severe flooding; a localized flood would be covered under your homeowner’s insurance policy but a widespread one probably wouldn’t be. The damaged property was used for business purposes: Most home insurance companies won’t cover any kind of damage done to a home that is being used for business purposes because most home insurance companies don’t offer business insurance policies. The loss wasn’t reported within the required time frame: In order for a homeowner’s claim to be valid, they have to report it within 12 months from when it happened. If you’ve had a water leak on your kitchen floor and didn’t report it until 3 years later, your claim will most likely be denied. You’re trying to submit a fraudulent claim: If you try submitting anything less than complete truth on any paperwork with your insurer, then you’ll automatically get denied as well.

2) You didn’t have enough coverage

A home insurance claim denied is an expensive lesson in making sure you’ve got the right coverage in place. The wrong choice of insurance can mean financial and personal consequences, so it’s important to understand the different types of coverage’s that are available. Find out more about what your policy does and doesn’t cover by reading below:

– Coverage gaps aren’t always easy to spot, so it’s important to get a thorough inspection of your home with a qualified inspector before you purchase insurance. Your inspector should note any damages or flaws with the structure, roofing, windows, pipes, wiring and foundation of your house before finalizing their report. Any issues found during this inspection will be noted for the insurer and may have a bearing on your homeowner’s insurance rates in the future.

– Sometimes homeowners make assumptions about how often they’ll need to use certain components of their homeowner’s insurance, like medical payments or liability protection, but there may be limits on these coverage’s depending on where you live. For example, many states require property owners to buy additional liability protection if they have higher amounts of construction work done on their homes than average.

– The insurer could also deny your home insurance claim denied if they don’t feel like you adequately prepared for disaster by maintaining your home with regular maintenance and checkups according to manufacturer instructions.

3) The policy was invalid because you did not disclose something important

Home insurance policies are designed to protect homeowners and the equity in their homes against financial setbacks due to unexpected, unfortunate incidents like fire or theft. However, you may have a home insurance claim denied if the incident was due to something you did not disclose during the policy application process. The insurer is looking for things such as:

-Selling your home without disclosing it to the insurer;

-Using your home for illegal purposes;

-Inadequate security systems that lead to an intruder breaking into your home.

What should I do? As with any life situation, speak with an expert before making any decisions that could lead to a denial of your home insurance claim

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4) The damage was pre-existing

One of the most common reasons for home insurance claim denied is because the damage was pre-existing. This means that there was some sort of damage before the actual event happened which led to your need for a claim. For example, if you were in an accident and needed car repairs, but it turns out that you hit a tree on your way home from work, chances are your auto insurance company will refuse to cover the cost because you hit a tree as opposed to something else like another car. It doesn’t matter whether or not you had any collision coverage because pre-existing damages (damage already there) will always take precedent over those that happened during a specific incident. In this case, since the damage existed before you were involved in the accident; it’s up to your homeowners’ insurance policy to cover those costs. The deductible is too high: If your deductible is too high – typically around $1,000 – then you’ll want to call a lawyer right away because deductibles are set by law and can’t be raised arbitrarily by insurers. If they’re telling you that they won’t pay until after your deductible has been met, they’re breaking the law. You didn’t read all of the fine print: Believe it or not, people have been turned down for their claims simply because they didn’t read the entire fine print when signing up for their plan!

5) You made a mistake during the application process

Recently, I was denied for a home insurance claim denied because I failed to disclose some information during the application process. One of the questions on the application asked if any modifications were made to my house and I answered No. At the time of applying, my contractor informed me that an HVAC unit was being installed in my house and would have to be listed as a modification. Had I known this when completing the form, it would not have been an issue. But it was still mine responsibility to mention it on my application. If you’re experiencing a denial with your home insurance claim or other insurer, read these five reasons why your homeowner’s or other insurance might have been denied.