As a property owner, you’ll know that keeping your property safe and risk-free is not cheap.
Property insurance claim can be expensive, especially if your house or office is in a high-risk location or a unique or historical building.
This means that having an adequate home insurance policy is very important.
When you buy a property insurance claim, you want to be insured against financial loss if your property is damaged or destroyed.
However, as with any other insurance policy, some conditions and exclusions could prevent you from making a claim.
Suppose your property insurance policy has terms and conditions about when and how you can make a claim.
In that case, it’s essential to understand those conditions to know what circumstances would trigger rejection if you attempt to make a claim.
If your property insurance claim has been triggered by an accident or disaster, understanding the exclusions can help you decide whether to file a claim.
However, there are things you must consider when choosing an insurance policy for your property.
For example, different policies suit different properties and locations.
In addition, certain factors could affect the decision of whether or not you should invest in a particular type of property insurance.
In this blog post, we will explain circumstances that would cause a property insurance claim to be rejected.
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- Circumstances That Would A Property Insurance Claim Be Rejected
Circumstances That Would A Property Insurance Claim Be Rejected
When purchasing an insurance policy, you will receive a quote for the premiums and an explanation of what is and isn’t covered by this policy.
There are numerous circumstances in which the insurer might reject a property insurance claim.
If you are currently shopping around for property insurance claims and want to know what to watch out for when buying one, then read on for more information about these common scenarios:
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1. An Irregular Premium Record
Pay your premiums so you don’t end up in the bad books of the insurance company.
Even one missed premium could put you under the radar and cause damage to your credit rating or even more expensive premiums in the future.
Regular premium payments are a must for any policy.
Claim rejection will necessarily occur if the insurance premium is not paid on time or not paid at all.
Clumsiness by policyholders is quite common these days and has made insurance companies even more careful with their money.
Therefore, the policyholder must avoid the radar of insurance providers and take all measures to prove authenticity.
If you haven’t taken any specific steps to prevent further damage from the initial loss, and you’re just relying on the complaint to help resolve it, your claim will likely be denied.
After an investigation by the insurer, if the damage is proven to have been willful, criminal, or due to clumsiness.
Your claim might be rejected.
3. Your Deductible
It is best to pay special attention to your deductible for wind/hail/hurricane damage, as they may have separate hidden deductibles.
The most common reason for claim rejection is that the loss is not expensive enough to claim.
Suppose you have a $40,000 deductible on your homeowner’s policy, and the air conditioner costs $35,000 to fix.
In that case, your insurance won’t pay anything on the claim because you must pay the deductible before your insurance company covers the damage.
4. Incorrect Information
Ensure you provide correct information about your candidate’s details, your details, details of characteristics – good and bad etc.
Even with a minor mistake, you can be accused of defrauding the insurer.
The incorrectly provided information can also be considered fraudulent.
5. Non-Disclosure Of Information
Failure to disclose information in any policy is frowned upon as it would be considered fraud in the eyes of the insurer.
To avoid further investigation or claim rejection, disclose all relevant information and avoid hiding even the most minor details.
Your policy does not cover perils that damage your property.
Standard property insurance won’t cover every damage; there are exclusions they won’t protect you from.
6. Inconclusive Evidence Of Harm.
It is essential to gather all kinds of evidence (pictures, videos, details of witnesses, etc.) to prove that the damage that was caused was caused by the hazard you mentioned.
Another reason for a claim to be denied is if there is inconclusive evidence of damage.
For example, your car has been hijacked, and the inspector has now come to check the incident.
If the inspector cannot find any evidence of a robbery and thinks that something else may be the cause of the missing items, then your claim will likely be denied.
7. Policy Terms
Many policies have specific terms and conditions.
And if you do not meet these conditions, the property insurance provider will reject the claim.
8. Failure To File A Claim In A Timely And Correct Manner
Read your policy correctly to know how much time you have to make a claim.
Usually, each insurance company has a specific time frame for making a claim.
If the policyholder exceeds this, their claim will likely be rejected.
The best thing you should do after a disaster is to notify your insurer.
Application deadlines depend on your policy.
9. Exclusion Clauses
Insurance policies, including health insurance plans, usually have exclusion clauses.
If the cause of the damage is an exclusion of coverage, your insurer may deny your claim.
You pay an insurance premium in exchange for the insurer agreeing to pay out if something specified in the policy happens.
The insurance company will investigate if you make a claim to ensure it is genuine and valid.
This might involve asking for proof of your costs, receipts, or quotes.
They may request third-party inspections of the damaged property and ask for evidence that you’ve made reasonable efforts to repair it yourself before they agree to cover the cost of repairs.
Before agreeing to an insurance policy, it’s essential to understand the aforementioned circumstances would make a property insurance claim be rejected.