If you’ve recently filed a homeowner’s insurance claim and were surprised to find that it was denied, you are not alone. When people talk about the experience of filing an insurance claim on their home, one common theme that comes up is how complicated and confusing the process can be, even if you know what you’re doing. The reason why it’s so complicated and confusing, though, isn’t because of you or your insurance company – it’s because of the way that insurance companies themselves work.
The Most Common Reasons for an Insurer to Reject a Homeowners Claim
1. One of the most common reasons for a homeowner’s insurance claim to be denied is that the damage is not covered by the policy.
2. Another common reason is that the homeowner did not take proper care of their home, and the insurer says that if they had, the damage would not have occurred.
3. Sometimes, claims are denied because the insurer says that the damage was caused by something that is not covered by the policy, such as floods or earthquakes.
4. If a homeowner makes a claim for something that happened a long time ago, it is likely to be denied because insurers typically only cover recent damages.
The Damage Wasn’t Caused by an Intentional Act
One of the most common reasons homeowner’s insurance claims are denied is because the damage wasn’t caused by an intentional act. For example, if your home is damaged by a fire that was started by a lightning strike, your claim will likely be denied because the damage wasn’t caused by an intentional act. And then, for another example: If you have homeowner’s insurance and there’s a water leak in your basement or foundation which causes mold to grow, but it can’t be determined where the leak came from and no one intentionally broke into your house to cause this problem. The insurer may deny coverage for mold removal costs because it couldn’t pinpoint how the leak happened or who’s responsible for it (since it could have been accidental). So what can you do? Well, the first thing you should do is try to work with your homeowner’s insurance company to resolve any issues or discrepancies on their end.
You Don’t Have Proof of Ownership
One common reason homeowner’s insurance claims are denied is because the policyholder doesn’t have enough proof that they own the damaged property. To avoid this, make sure you have a copy of your deed or mortgage in a safe place. If your home is destroyed, this document will be crucial in proving your ownership to the insurance company.
You Didn’t Keep Up with Maintenance (five sentences): Regular maintenance is key to keeping your home in good condition and protecting your investment. Unfortunately, many people forget to do things like clean their gutters or fix a broken window, and then wonder why their homeowner’s insurance claim was denied when water damage or a break-in occurs.
Damage to The Whole House
When it comes to homeowner’s insurance claims, damage to the whole house is one of the most common reasons for a claim to be denied. The reason for this is that most policies have a very specific definition of what constitutes damage to the whole house. In order for your claim to be covered, the damage must be caused by a single event (like a fire or severe storm) and must be severe enough to render the entire house uninhabitable. If only part of your home is damaged, it’s likely that your claim will be denied.
Smoke Alarms Weren’t Working at The Time of Fire
One common reason why homeowner’s insurance claims are denied is because the smoke alarms weren’t working at the time of the fire. This is usually due to a lack of battery power or the alarms being too old. If you can’t remember the last time you changed the batteries in your smoke detectors, now is a good time to do so. You should also check the expiration date on your alarms and replace them if necessary.
Only Minor Structural Damage Was Done
If your home has sustained only minor structural damage, your homeowner’s insurance claim may be denied. The reason for this is that most policies have a deductible that must be met before the insurer will pay out on a claim. In the case of minor damage, it is often less expensive to pay for the repairs yourself than it is to meet your deductible.
Water Damage, Flooding, And Sewage Backup
Water damage is one of the most common reasons for homeowner’s insurance claims, but it’s also one of the most likely to be denied. That’s because most policies exclude coverage for flooding and sewage backup, two of the most common types of water damage. If your home has been damaged by water, your first step should be to contact your insurance company and file a claim. But don’t be surprised if they deny your claim outright or offer you only a fraction of what you’re expecting. Here’s why
Lack of Maintenance / Negligence One of the most common reasons that homeowner’s insurance claims are denied is due to a lack of maintenance or negligence on the part of the policyholder. If your home is in disrepair, it’s more likely to sustain damage in a storm or other event, and your insurer may refuse to pay out on a claim. To avoid this, it’s important to keep up with regular maintenance and make any necessary repairs in a timely manner.
