When you file a homeowners insurance claim, it is possible that the insurer will deny the claim for various reasons. Before you assume that your policy does not cover the damage due to the denial, take a step back and review the situation. You are within your rights to find out the details and determine if the denial was accidental or related to a filing mistake.
Get a copy of the claim and read through the document to determine the reason that you were denied. If you find that the jargon is too complicated to understand, then call the insurance provider and ask questions.
You are within your legal rights to ask for an explanation for the denial. The insurance provider is legally obligated to explain the reason so that you are fully aware of the situation.
Taking the step of reviewing the documentation allows you to identify mistakes. Although companies take measures to reduce the risk of mistakes, filing errors or mix-ups can occur.
After you know the reason that you were denied, take time to read through your policy. Although mistakes do not occur on a regular basis, it is possible that a filing error or a mix-up between policy holders resulted in a denial.
Carefully read through the basic policy and the fine print. Look for any clauses that might result in a refusal to pay for the damages to your home. Since every individual has different coverage based on state laws and personal selections, you may or may not be covered for the specific situation. Only the documentation will tell you what is covered and what is not on your specific coverage plan.
Look for any discrepancies on the account. For example, if your state has a specific minimum coverage and you notice that the plan does not follow state laws or the denial was related to a coverage amount that was limited to a lower rate than the state requires, then point out the discrepancy to the insurer. In most cases, the error is accidental and the company will approve the claim after the mistake is pointed out.
Although the primary reason a company may deny funds is related to the policy and coverage, it might also relate to proof. Providing proof by sending pictures, providing a copy of the deed or showing documentation that provides an estimate of repair costs might be the key to getting the funds for repairs.
Insurers may deny funds for your home if you do not provide adequate proof. The type of proof will vary based on the situation, but you should include a police report or any other formal documentation if it is available.
When your home is damaged due to a theft, fire or other problem, you do have the right to file a claim. A denial does not necessarily mean you do not have options, so it is important to recognize your rights before you take the full brunt of the financial hit. Talk to your local agent to learn more details about solutions that may help in your specific situation.
My House is Paid Off - Do I still need Homeowners Insurance?
As a homeowner, you probably had to initially get your homeowners insurance policy as a requirement when you got your mortgage. This is because the lender had a lien on the home, meaning that the l...
Read More →
Is it True That a Home Insurance Claim Will Count Against Me?
When you purchase insurance, regardless of whether you buy a home, auto or health insurance policy, you do so with the expectation that if and when you have to file a claim for a repair, the compan...
Read More →
What is Recommended to do in Order to Protect my Assets if I am Sued?
If you are being sued due to an auto accident or an accident that takes place in your home, then it is important to know what you need to protect your assets. By taking action to keep your personal...
Read More →