Some circumstances could involve property insurance claims being rejected. In case you might be wondering what property insurance is all about.
Well, you just found yourself in the right place. In this article, we would show you what property insurance is and how it can be rejected. You just have to keep scrolling!
What is property insurance?
Property insurance is a type of insurance that helps protect the property of individuals like houses, companies, etc from damages such as fire, flood, theft, and other risks. Examples of this kind of insurance are flood, rentals, and homeowners insurance policies.
The system assists insurance clients by paying for the loss according to the sum that has been insured for them.
Filing an Insurance Claim
The first thing to do is carefully read the declarations page of your insurance policy. Concentrate on the section that deals with personal property.
Make sure that you are using a current copy of your policy, and that you and the insurance company are using the same version. You need to figure out if any exclusions in the insurance policy apply to you right now.
Remember that the insurance company is motivated to minimize its payout. You may need to negotiate carefully to get the results you deserve. Always remain calm and respectful when speaking with insurance adjusters. Don’t be afraid to ask questions if you’re confused.
Below are the circumstances for a property insurance claim to be rejected:
Circumstances In Which Property Insurance Claim Is Rejected
The common reasons that lead to rejection of property insurance claims are:
1. The Loss Is Not Covered In Policy
Property insurance policies are customized to meet specific needs. Let’s say you get property damage insurance but not liability coverage; in such a scenario, the insurance company will not fulfill any liability claims that arise. Let’s look at another scenario.
If you do not purchase flood insurance or damage from an earthquake, the insurer will deny your claim. In the same way, every policy has some exceptions. It will not be accepted if your property is damaged as a result of any of the so-called exclusions.
As a result, as previously said, you should know your insurance policy’s terms and conditions like the back of your hand. Only losses that are covered by the insurance policy are honored. Anything
2. Unfulfilled Policy Conditions
Some necessary conditions need to be fulfilled by the insured. Failing to abide with them will lead to claim rejection.
Examples of such conditions are security locks on all doors leading outside, the necessity of one or more fire extinguishers depending on the size of the property, etc. These conditions are mentioned in the policy document.
3. Delay In Filing Claim
In case of loss or damage to property, there is a set timeframe within which the insurance company needs to be informed and the claim forms filled and submitted correctly. If you fail to meet this timeline, the claim will be denied.
But rest assured, the timelines are realistic and can be met with relative ease. This information is available in your policy document. If you cannot find it, your insurance company is just a phone call away.
4. Missed Premium(s)
If you fail to pay one or more premiums against your policy, the insurance company is under no legal liability to honor your claim. Since you broke the terms of the contract by skipping the problem, the damage is now your sole responsibility.
5. Withholding Pertinent Information
Claims arising due to property owners or tenant’s negligence are not covered. These are also the cases where the insured tries to withhold pertinent information that could lead to the truth.
So any claim where important facts or information are conveniently withheld by the insured will get rejected.
6. Damage Is Not Documented Correctly
When filing a claim, the property owner has to prove loss. Hence, it is important to document it in detail. You need to provide even small details like date and approximate time of loss, attach pictures and videos of the damage, mention the assets condition prior to the damage, etc.
Only with full documentation of a covered loss can you have the guarantee that the insurance company will fulfill its side of the deal.
7. Preventive Steps Are Not Taken To Contain Further Damage
Once the primary damage has occurred, it is the property owner or tenant’s responsibility to ensure that they take the necessary steps to prevent its further spread.
Some of us do it diligently and make copious notes and pics of the efforts, and many of us leave it to chance. The insurance company is under no obligation to cover the secondary loss if you have failed to follow the preventive measures.
8. The Insurer Suspects Fraud
The insurance company conducts its own investigation of the loss. If it suspects fraud and finds any evidence of the same, your claim will be denied. Since they thoroughly investigate every high dollar value claim, it is best advised that you don’t use any underhand tactics.
Many times it has been seen that people try to pass off intentional damage to property as accidental. From there, they build a false case to prove loss. These fraudulent methods are not looked upon favorably by the insurer.
What to do if an insurance claim is denied
If an issue of your insurance claim arises there are certain steps to follow in dealing with the issue.
- If you don’t understand the insurance company’s policies, go to them and see what you can do to address the problem.
- If your claim was denied on the basis of a fraudulent claim, you can hire an attorney or lawyer to submit a lawsuit complaint by presenting reliable evidence of the property damage.
- You should have proof that you are the owner of the property, as well as proof that the damages were unintentional.
Right after something terrible has happened to your property, the last thing you want to worry about is insurance claims.
However, filing an insurance claim is often the fastest way to get your life back in order! It’s important that you understand your rights and responsibilities in this situation so that you can deal with insurance companies with minimal stress.
How Long Do You Have to Make an Insurance Claim?
Time constraints vary between insurance companies. It’s usually a good idea to file as quickly as possible after a disaster—at least within a year of the incident.
Insurance companies are usually required to send you paperwork for a claim within thirty days of a request. If your insurance company provides an online filing process, if that’s more convenient for you,
Check your insurance policy for all the deadlines involved in making a claim. Every part of the claims process may be time-sensitive. For example, check deadlines for documenting the damage as well as filing paperwork. If your claim is rejected, ask your insurance company about deadlines for filing appeals.
How to Fight an Insurance Claim
If the insurance company rejects your claim, you have the right to dispute the issue within the appeals deadline. Contact your claims adjuster first. You’ll need to find out exactly why the insurance company rejected your claim.
The company should send you a formal letter explaining why they rejected you; if anything in that letter is unclear, contact the company and ask questions until you understand. If you decide to appeal the rejection, prepare as much evidence as you can to support your case.
Here are a few ways to fight an insurance claim rejection:
- File an appeal with the insurance company within the deadline.
- If you disagree with your insurance company’s appraisal, request an independent appraisal for a second opinion on your property damage.
- If your appeal is rejected, you can file a complaint with your state insurance board so the appeal process can be investigated.
- Contact an attorney to investigate further legal steps.
Preventing Property and Information Loss
When it comes to preventing property damage, storage techniques are key. Not sure how to store your family’s heirlooms? Our colleagues at Prism Specialties have some archival method tips for you.
If your computers have been damaged, check out Electronic Restoration Services’ tips for recovering data from damaged hard drives.
Conclusion
You ought to know the policies that guide every insurance company as not all insurance companies have the same policy in order not to fall victim to property insurance claim rejection.
Was this article helpful? If so, why not comment below to share your thoughts? You can also like and share this article with your friends and family.
Also Read:
- Preferred Provider Organization (PPO) – What Is It?
- What Is Homeowners Insurance And What Does It Cover?
- What Are Insurance Premiums and How Do You Calculate Them?
- Types of Business Insurance
- What Is Gap Insurance And How Does It Work?
- What is Umbrella Insurance and How Does It Work?
- What is Travel Insurance and How Does It Work?
- What Is Liability Insurance and How Does It Work?
- COBRA Insurance: What Is It and How Much Does It Cost?
- Prescription Drug Insurance