You buy insurance coverage to help protect your investment when you own a property. The last thing you want is bothering about your insurer denying your claim when things go wrong.
Filing a property insurance claim is simple. But why does some claim get approved while others are denied? Here are common reasons why your property insurance claim could be declined.
Damage Not Covered by Your Insurance
Property insurance doesn’t cover everything, and your specific policy may not cover the damage you sustained. However, most standard policies cover damages from:
- Theft
- Explosion
- Fire and lightning
- Vandalism, riot, malicious mischief, and civil commotion
Standard policies don’t cover some types of damage and may require an add-on. Common add-ons include:
- Sinkhole
- Flooding
- Earthquake
Your claim will be denied if your policy doesn’t cover your damage.
Missing the Filing Deadline
You will have your claim denied if you fail to file your claim as soon as possible. The time limits for filing a property insurance claim vary based on your specific circumstances and policy terms.
Premium Wasn’t Paid
Your property insurance claim will be denied if you forget to pay your premium. This means you don’t have coverage when you think you did. Pay your insurance payments to avoid losing your coverage.
Tips to Avoid Claim Denial
- Understand your time limits for filing a claim
- Pay your insurance premiums on time
- Inform your insurer of any loss immediately
- Know what your policy covers and excludes
- Take all proper steps after a loss to protect the property.