UNDER WHAT CIRCUMSTANCES WOULD A PROPERTY INSURANCE CLAIM BE DENIED?

Under what circumstances would a property insurance claim be denied? There are many circumstances in which insurance will be voided. One of which is the application of the claim promptly.

Have you ever had your insurance claims denied because you did not comply with the policy? Or maybe you haven’t read your entire insurance policy? Or is your homeowner’s insurance denied for an unknown reason?

Well, whatever reasons you can think of, it’s best to read and understand your insurance policies, especially their denial. It is important to know the trends to reject your property claim.

This article will discuss some situations or circumstances that could result in your insurance being denied and voided. Also, here are some tips on what you should do. So if you’re ready, then let’s move on.

insurance claim

First of all, when you are purchasing insurance, it is important to read the declaration page. Understand the details, especially in the section where your personal property is involved. Also, be sure to read the most recent copy of your insurance policy. Make sure your copy and the insurance company’s copy are the same.

Look for exclusions with the policy that might apply to you. Remember that insurance companies are always looking for ways to minimize your payout, so be on the lookout.

Also, keep in mind to always negotiate well to obtain the results and the payment of your well-deserved insurance. Finally, stay calm and respectful at all times, especially to insurance adjusters, and be open to asking questions if there are parts you don’t understand.

Under what circumstances would a property insurance claim be denied?

So under what circumstances would a property insurance claim be denied? You may not have realized that what you are doing is already a reason for the insurance company to deny your claim.

Reason #1. late claim

The length of the claim can vary between different insurance companies. The best way to avoid being denied for this is to file a claim right away. The company will ask you to submit paper assignments within a month of applying. If your business has an online filing system, that’s much better as it will be convenient. Take note of the deadlines because these deadlines are problematic if you miss any of them.

Reason #2. Condition excluded from the policy

You may or may not have read your policy, but there are cases where your insurance may be denied due to some policy exclusions. Some of the most common exclusions are caused by natural events such as floods, earthquakes, or erosion.

These exclusions are most commonly found in property insurance. However, there is also wear and tear on property or damage due to faulty construction and design of infrastructure.

Reason #3. No payment of insurance premiums

Another reason you lose your insurance claim is that you haven’t done your part in paying your policy premiums. Insurers can cancel your insurance policies in the middle of the policy period if you haven’t paid your share.

If your insurance has been cancelled, ask your insurer for advice as to whether you have good reason to do so or what appropriate steps you took on a legal basis. If you do not agree with the cancellation, you can file a complaint with the AFCA.

Reason #4. Suspicious or false statement

Some insurers want to prove that you intended to deceive the insurer or commit fraud. In the event of fraud, the insurer will no longer be responsible for providing you with insurance coverage. So if your insurer is investigating you, they try to remain calm at all times. If asked, take your time answering each question. If your conversation is being recorded, please request a digital copy for future purposes.

Be careful and alert not to sign anything you have not read, understood or are not sure about. There have been many cases of insurance claim denial when some of them signed without fully understanding what is written on the paper.

The best thing I could suggest is that you seek some legal advice before and after the interview. It is to make sure you are not cheated or tricked into losing your well-deserved insurance claim.

Reason #5. No precautions after damage at an initial loss

Some insurance claim denial cases are what happens after the property is destroyed. Some cases include failure to take precautions after property has been damaged.

For example, if a burglar has broken your window, you completely damaged the window because you know insurance will pay for it because of your anger. So absolutely not, this can threaten your insurance claim.

After the damage, be sure to document everything. Take a photo of the damage and send it to your insurer right away to make sure your property damage is compensated.

conclusion

So if you’re wondering under what circumstances a property insurance claim would be denied, you have these ideas to get you started. Although what I have written here is a general reason for rejection. It’s still best to read their policies before signing them. Each insurance company may have included more exclusions, so be vigilant. Also, make sure you understand what you have read.

You don’t want to pay for something you won’t use when you need it, do you? So, long story short, after the damage has occurred, document it and file an insurance claim right away.