Know why some home insurance claims are usually rejected?
Making a claim is usually a relative clear-cut process. However, for various reasons, it is not unusual for a home insurance claim to go uncompensated and the claimant left empty handed. Being aware why some claims are rejected therefore could assist clients when a time reaches for making a claim.
Wear and tear
Most of the home insurance policies require a property to be “well maintained” and kept in “good condition”. If it is not, and you go ahead to make a claim; for instance, damage from a burst water pipe, the insurance company may conclude that the reason the issue arose was due to the claimant’s slackness, rather than basing it on natural causes.
There are too many valuables and permutations that are involved in deeming if a property is well maintained. Here are a few examples that can shed some light on how insurance companies go about making their decisions to know when or not to give a claim. Claims are usually rejected where:
- Poor roof upkeep, such as cracked chimneys and dislodged tiles, means the damage which took place during a snowstorm wouldn’t have turned out otherwise.
- A boiler, malfunctions due to too little servicing
- Trees are left to grow naturally without any kind of trimming, hence being detrimental to a property’s foundations.
- Water damage brought about by bathroom tilling that has not been regularly re-grouted.
Inaccurate levels of cover
A home and its contents must have the accurate level of cover. Obviously, maximum claim limits which are lower than the true value of your belongings and home could mean you lose out.
Likewise, if your home is burgled off its content by burglars while you are away, but the entire maximum claim limit for items is below the total assessment of what has been taken, you will financially suffer.
Non-disclosure of materials
A lot of claims go uncompensated because the policyholder hasn’t been honest, either intentionally or unintentionally when they signed up for home insurance cover in the first place.
People may not want to reveal the previous claim they have agreed on with other insurance companies with an aim to maintain a no claims discount. However, if a claim has been tabled and your insurer finds out you kept them in the dark about the previous claims, they are probably going to cancel your contract and reject the claim as well.
There are other, more “sincere” mistakes people make that lead to grave claims being rejected. All you need is to be keen and dutiful to avoid some of these claim rejections.