Getting a property insurance claim denied is never a fun experience. But there is a list of usual suspects when it comes to the reason property claims get denied. It’s important to familiarize yourself with what these reasons are so you can know them going into a claim and understand your options if your claim is in fact denied.
Your Policy Doesn’t Cover What You’re Trying to Claim
This is one of the most common reasons certain claims get denied. Simply put, some claims just aren’t covered by insurance companies to begin with. Always read your insurance policy carefully to understand what is and what is not covered. Your geographic location affects what kind of weather events you’re covered for, for example.
You Missed an Insurance Payment
Failing to pay any installment of your insurance plan could give your insurance company grounds to deny your property insurance claim. There are ways to dispute this denial should it happen to you, if your insurer did not give you adequate notice or give you a grace period before ending your coverage.
You Missed the Claim Filing Deadline
This is an easy one to miss but a hard one to fight. There are often very strict claims filing deadlines in place for homeowner insurance policies. The average deadline is 180 days to 1 year from the date of damage, but every insurance company is different, so you should check what your claim filing deadline is for your policy. Whatever the filing deadline, you should always call your insurance company to report damage as soon as possible.
You Didn’t Mitigate Your Losses
You are required to mitigate your losses when you sustain damage to your home, which means taking steps to prevent further damage from occurring. For example, if your roof sprung a leak due to heavy rain, you are required to patch it up temporarily to prevent water damage to your property. If you can’t demonstrate that you have sufficiently mitigated your losses, your insurance company may deny your claim.
You Didn’t Completely Fill Out Your Claim
This is another scenario where even a small, preventable misstep can lead to your claim being denied. Leaving out important information or leaving parts of forms incomplete is one of the most common mistakes homeowners make when trying to file a claim. If you don’t have sufficient documentation to prove the losses you sustained, your claim may be denied.
You Didn’t Properly Maintain Your Home
If you fail to properly maintain your home and that carelessness leads to damage down the line, this may result in your insurance claim being denied. For example, if you sustained termite damage but didn’t call in a specialist when one was recommended to you, the insurance company may rule that as a sufficient reason to deny your claim.
You Received a Bad Faith Claim Denial
The above reasons are all valid justifications for denying a home insurance claim. But there are also bad faith – illegal or unfair – reasons that an insurer may refuse to pay out your claim. These are called wrongful claim denials, a sign that an insurer is acting in bad faith. If your insurance claim is denied, but you are not given a specific reason for the denial, your insurer could be acting in bad faith. You may be able to appeal a bad-faith claim denial with the support of a good representative.
A Public Adjuster Works for You
Contact Cleveland Public Adjusters before you contact your insurance company so we can help you take the right steps with your claim from the beginning. We work hard to get property owners the compensation they deserve from their insurance companies.