When dealing with the aftermath of a disaster such as a hurricane, earthquake or fire, one of the first steps you'll take is to contact your home insurance company in order to file a claim. But having an insurance policy and filing a claim isn't a recipe for total reimbursement; sometimes, home insurance claims get denied.
One way to help ensure that your important claims are not denied is to learn the many different reasons that could cause an insurance company to deny it. While the following list is definitely not exhaustive, it does share many of the most common reasons for denied claims.
- Negligence: A home insurance policy is meant to protect against many different incidents but if a homeowner's negligence contributes to the damage, it could cause the company to deny the claim. Home insurance is meant to provide benefits for accidental damages and losses rather than those that occur because an individual has been negligent in maintaining his or her property. For example, if your roof falls into your home as result of a hurricane that would not be considered negligence but an accident. But if your roof caves in because you have termite damage that you neglected to treat then your insurance will likely deny the claim.
- Facts are not presented on the application: Insurance applicants are expected to be truthful when applying for coverage. If, after making a claim, your insurance company finds that you're not honest on your initial application for coverage it's possible that your policy could be rescinded and your claim denied. When policy is rescinded the premiums paid are generally refunded and it's as though the policy was never issued.
- The premium is unpaid: An insurance company has a contractual obligation to make good on the protections guaranteed in the policies it issues. Policyholders have no contractual responsibility to pay their premiums; if they pay late or don't pay at all, they will not be reported to the credit reporting agencies and will not be sent to collections. However, policyholders must pay their premiums on time if they expect their insurance company to hold up its end of the bargain. It doesn't matter how many years you've had your insurance policy, if you neglect to make the premium payment on time and the policy lapses your claims will be denied.
- Damage was caused by an excluded event such as flood: Your home insurance policy does not offer carte blanche coverage for any disaster that might damage your home. Even if something isn't due to your negligence, it still may not be covered on your policy. For example, damages that occur due to floods are not covered by home insurance policies; instead, they are covered by flood insurance policies. Other examples include earth movement such as sinkholes and earthquakes and damages that occur during times of political unrest or terrorist attacks. Your individual policy may have its own set of exclusions and those are something that you should understand. Your insurance agent may even be able to help you find a supplemental policy that can cover some of them.
- The claim amount was less than the deductible: If your home insurance policy has a deductible, then that's the amount that you must pay or absorb for damages that occur. Only damages that exceed this amount are reimbursed by the insurance company. Your policy could have several different deductibles for different incidents and types of damage.
- The damaged property was used professionally not personally: If you operate a business out of your home or if you store business property inside the home during off hours, then that property may be excluded from coverage under your personal home insurance policy. Commercial insurance is necessary to cover property that is owned by or used by a business. Even if you run a very small business out of your home, unless you have a special endorsement your home insurance policy that specifies your business assets are covered, your claim could be denied.
One easy way to reduce the likelihood that your home insurance claims will be denied is to make sure that your policy is set up to meet your specific needs. Give us a call today and allow us to help you understand how your coverage should be designed so that it affords you the best protection.
Christine Huddleston has over 15 years of experience in the insurance industry and is President of All About Insurance Agency. To find out more about Dallas Home Insurance call us today 817-626-339 for an insurance quote or visit http://www.AllAboutIns.com/.
Article Source: http://EzineArticles.com/?expert=Christine_Huddleston
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