Once you file an insurance claim, let’s face it – you’re expecting to get your money’s worth. But sometimes, insurance companies can deny your claim; leaving you with the feeling that you’ve been paying your premiums for absolutely nothing. And this goes for all kind of claims, from car insurance to a fire damage claim. Indeed, getting back on your feet can be difficult if insurance doesn’t pan out; which means you need to know about the reasons your claim can get denied in advance. Don’t worry, though – we’re here to help you out with that.
Unpaid premiums
Obviously, there’s a reason why people get insurance in the first place; the need for financial security in your life, no matter what happens. Generally, planning for the worst may seem like a sour outlook on life; but when it comes to insurance, it’s beneficial. Which is why most people opt for insurance policies for all kinds of situations. But with that in mind, you also need to plan for the eventuality of your claim being rejected. Sure, consulting a public claims adjuster like a-zclaimsadjusters.com is always the best option in such a case. But it doesn’t hurt to prepare yourself in advance; so you should know what one of the most often reasons your claim can get denied is; which is unpaid premiums.
For various reasons, people may miss their deadlines for paying insurance premiums. And that’s the number one cause of insurance providers rejecting the claims of their customers. But regardless of the reason, don’t worry; the law protects owners of insurance policies even in such a case. More specifically, insurers have to include a clause on outstanding premiums in every insurance policy. And that cause guarantees you a grace period to pay any outstanding premiums. Make sure to check your insurance policy, because you’ll see just how long the period is there. And while having that option is great; it’s still best that you make all of your payments on time. That way, you’ll eliminate the possibility of the insurer quickly rejecting your claim.
Lack of documentation
When it comes to home insurance, you’re looking to protect yourself against financial issues if your household sustains any damage. Unfortunately enough, there are plenty of reasons your claim can get denied – and you need to prevent that from happening. Sure, knowing who to call after your fire damage insurance claim gets denied in FL is essential; but if you know the reasons why these things happen, you can prevent that whole ordeal in the first place. So, bearing that in mind – why do insurance companies reject home insurance claims?
In many cases, insurance providers deny a claim because of a simple lack of documentation. Yes, dealing with paperwork can be tedious and pesky; but if you want to get your money’s worth out of insurance premiums, it’s something you have to think about. Returning to the fire damage analogy – you’d have to provide your insurance provider with detailed documentation, proving precisely what property sustained damage. Plus, you’ll need to prove how much you had paid for it in the first place. If you don’t have this information on hand, they may throw out your claim for compensation. So, if you want your claim to go through smoothly, make sure to cooperate with the insurance provider. Give them as many details on the property damage as you possibly can – and keep records of major purchases in your household.
Misrepresenting lost value is one of the reasons your claim can get denied
So, let’s say that you’ve had some sort of significant damage happen to your real estate property; like the aforementioned fire damage or even something similarly terrible like storm damage. First, you’ll need to find the right storage company to put your belongings into temporary storage. But once you’ve done that, you’ll have to start dealing with the insurance claim and report the lost value to your insurance provider. And right there, people make a crucial mistake – misrepresenting their home to the insurance company. That’s one of the primary reasons your claim can get denied; precisely the thing to avoid.
Unfortunately, in most cases – you lose more value in a house fire than your insurance adjuster can prove. While they may be able to evaluate your expensive TV, there are valuables in other, sentimental ways. There’s no easy way to measure the lost value of old family albums or unique heirlooms. And because of that, some people tend to inflate the value of their home in their insurance claim. Don’t even think about doing this! It’s something that could put your complete insurance claim into jeopardy.
Think about witness statements
While insurance does exist to safeguard your financial interests in case of a tragedy; insurance companies look to protect their interests more than your own. Which means that they will be thorough in their review of your insurance claim; particularly regarding the value, you’ve stated for your home. They will interview anyone who had any connection with your property damage; from emergency first responders like firefighters who helped you avoid injuries on a moving day to members of your family. And if it turns out that you have misreported how valuable your lost belongings are – you’ll be dealing with one of the reasons your claim can get denied, easily. So, always be truthful when it comes to insurance claims – only that will guarantee success!
