Having a home insurance policy is useful for receiving compensation when an accident occurs. Unfortunately, not everything is covered under home insurance and some claims can be denied depending on your policy and the incident.
Some dangers that face your home will not be covered under a basic home insurance policy. Common exclusions include damage caused by floods and earthquakes. Unless your insurer offers these additional coverages and you add them to the policy, any damage to your home or belongings caused by an earthquake or flood will not be covered.
Every aspect of home insurance has its own limitations and exclusions. Certain pet breeds are excluded from liability coverage on home insurance policies, for example. Be sure to check your home insurance policy to understand the exclusions so you can avoid filing a claim that will be denied.
Even covered dangers can lead to a denied claim in certain cases, such as negligence. Homeowner negligence refers to damage to the home or your belongings that were avoidable. If the homeowner fails to take the correct safety or repair measures and damage occurs, a home insurance claim may be denied. For example, say a storm sweeps in and heavily damages your roof. The claims adjuster from your insurer investigates and finds that several shingles from the roof had been missing prior to the storm. Since you did not repair the damage beforehand, you may have a claim denied or receive less compensation for the damages.
In some cases, insurers will deny claims if too many are filed within a short span of time. This is especially true if more than one claim is denied due to homeowner negligence or other factors. If you have had too many fraudulent claims on your home insurance policy, you could even face having said policy canceled.
Filed Too Late
Many home insurance policies have a time limit in which you must file a claim after an accident, such as 30 days. If you want too long to file a claim, you could risk the claim being denied on the basis that the damage either grew worse through neglect or no one needed immediate compensation.
Speak with your insurance agent about any questions you have on your home insurance policy. Home insurance offers a wide range of coverage, but it is important to know its restrictions, as well.
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