The Fundamentals Of Property Insurance Claim Services Revealed

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When addressing the aftermath of a disaster for example a hurricane, earthquake or fire, one of the first steps you'll take is to contact your home insurance company as a way to file a claim. But having an insurance coverage policy and filing a claim is not a recipe for total reimbursement; ordinarily, home coverage claims get denied.

A proven way to help ensure that your important claims are not denied is to learn the numerous reasons that could cause an coverage company to deny it. While the following list is definitely not exhaustive, it does share many of the most frequent reasons for denied claims.

Negligence: A home insurance coverage policy is meant to protect against numerous incidents but if a homeowner's negligence contributes to the damage, it could cause the company to deny the claim. Home coverage is meant to provide benefits for accidental damages and losses rather than those that occur because a person has been negligent in maintaining his or her property. By way of example, if your roof falls into your house as result of a hurricane that will 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 coverage will likely deny the claim.

Facts are not presented on the application: Coverage applicants are anticipated to be truthful when submitting an application for coverage. If, after making a claim, your insurance company finds that you are not honest on your initial application for coverage it's possible that your particular policy could be rescinded and your claim denied. When policy is rescinded the premiums paid are typically refunded and it is as however the policy was never issued.

The premium is unpaid: An insurance coverage company has a contractual obligation to make good on the protections guaranteed within the policies it issues. Policyholders have no contractual responsibility to pay their premiums; should they pay late or do not pay at all, they are going to not be reported to the credit reporting agencies and will not be sent to collections. In contrast, policyholders must pay their premiums on time should they expect their insurance company to hold up its end of the bargain. It will not matter how several years you've had your insurance policy, if you neglect to make the premium payment on time as well as the policy lapses your claims will be denied.

Damage was caused by an excluded event for example flood: Your home coverage policy isn't going to offer carte blanche coverage for just about any disaster that might damage your home. Even if something is not due to your negligence, it still may not be covered on your policy. For example, damages that occur as a result of floods are not covered by home insurance coverage policies; instead, they are covered by flood coverage 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 an element that you should understand. Your coverage agent may even be able to help you find a supplemental policy that will cover many of them.

The claim amount was less than the deductible: If your house insurance coverage policy has a deductible, then that is the amount that you need to pay or absorb for damages that occur. Only damages that exceed this amount are reimbursed through the coverage company. Your policy could have a number of different deductibles for several incidents and kinds of damage.

The damaged property was used professionally not personally: If you operate a business out of your house or if you store business property in the home during off hours, then that property could be excluded from coverage under your personal home insurance policy. Commercial coverage is essential to cover property that's owned by or employed by a business. Even when you run an extremely small business out of your home, unless you've got a special endorsement your house insurance policy that specifies your business assets are covered, your claim might be denied.
One easy way to reduce the likelihood that your particular home coverage claims will be denied is to ensure that your policy is setup to meet your specific needs. Give us a call today and allow us to help you understand how your coverage should be designed in order that it affords you the most effective protection.