If you recently filed a home insurance claim and were surprised to find that it was denied, you likely have a number of questions. Below are the answers to three common questions surrounding insurance claim denials and what to do if you believe your claim has been wrongfully denied.
Why Would a Home Insurance Claim Be Denied?
There are quite a few reasons that a home insurance claim may be denied, and talking to your insurance agent before filing the claim may save you a bit of time and money.
One reason a claim may be denied is because the cause of the damage isn't covered under your home insurance policy. Certain weather events, such as floods and earthquakes, aren't usually covered under your insurance, so if you file a damage claim and it's determined that an uncovered event caused the damage, your claim will likely be denied. Other reasons for a denied claim include not paying your insurance premiums on time or failing to comply with insurance policy conditions (which may have helped you to avoid the damage in the first place).
Why Did Your Insurance Rates Increase Following a Denied Claim?
Many people mistakenly believe that filing claims will lead to an increase in your insurance rates. While filing claims will not increase your insurance rates, your insurance agent may find other reasons to increase your insurance rates while investigating your claims.
For example, if a claim is filed for water damage, an insurance agent will go to the house to inspect the damage and make a decision. While some instances of water damage will be covered, the insurance agent may find that the water damage wasn't discovered sooner because the homeowner is a hoarder. In this case, this specific homeowner's rates may increase, not because a claim was filed, but because a significant risk (hoarding) was discovered when the agent was inspecting the claim.
What Can You Do if the Claim You Filed is Denied?
If you've filed an insurance claim and your claim has been denied, you may be wondering what options are available to you.
If, after reviewing your insurance policy and the letter of denial, you disagree with the decision that your insurance company came to, it's possible to file an appeal. It's always important to bring up specific instances where you believe the company was incorrect in their evaluation of the situation and provide documentation when possible. There are instances where lack of communication can lead to a claim denial, so it's important to keep the lines of communication open and be sure to work with your insurance agent closely to best understand the company's decisions and learn more about the appeals process.
Dealing with a home insurance claim denial can be difficult, but the answers to the above questions may provide you with a better understanding of the process. To learn more about your insurance policy and what your options are if a claim has been denied, consult with your insurance agent today.Share