People buy property insurance to protect their financial interests, knowing they will be compensated if they incur damage to their homes and cars. They pay their premiums every month and enjoy the peace-of-mind that comes with coverage.
It’s important to understand that insurance companies will usually try to get away with the lowest possible settlement to save them from large payouts to policy holders, especially in times of catastrophes. You are entitled to the full amount as specified in your policy.
Too often people are shocked when they file a claim and it is denied. A “technical” reason or other explanation is usually the culprit. Here are some of the reasons an insurance company will use to deny your claim:
1) Not filing on time: Your insurance policy will require that you notify them promptly of any loss. There are also time sensitive requirements for the filing and documentation of any claim.
2) False statements or questionable claims: Post-disaster you can expect your insurance company to send their own adjuster to investigate your claim. If they find anything suspicious or questionable involving the original application for coverage or with the claim itself, it is possible they will try to use that to deny your claim.
3) Insufficient documentation of the damage: One of your responsibilities as a property owner is to file and prove your claim to the insurance company.
4) Exclusion clauses: Every property insurance policy comes with its exclusions. If the cause of your property damage is excluded from coverage in your policy, the insurer may use this as a reason for denial.
5) Not taking sufficient preventative measures following a loss: Following a property loss, the policyholder is required to protect the property from further damage and to mitigate the extent of loss.