Do you worry about your future? Is your job unstable? Are you afraid of financial risks in the coming years? Then property insurance companies come in to save you from such dangers. The insurance company provides various plans to protect you and your family from financial losses in the future.
However, there are certain scenarios in which insurance companies may not take responsibility. Before taking advantage of it, you must be aware of every side of this deal. People usually need to learn where they went wrong. Sometimes, the insurance company is not liable and rejects your claim. There are various reasons for it, which we will discuss further.
What is Property Insurance?
You can get insurance for your property, and they will cover all the damage to it. This property insurance covers your owned property. They protect it from fire, theft, or any other collateral damage.
The company is liable to reimburse your property’s structure. If you have property insurance, it is usually in response to any fire or theft. Isn’t this the best saving? You do not have to worry now about future risks. But does it work every time?
What kind of property insurance claim?
There is a proper procedure to claim your property insurance and get refunded. You must take the following steps to accomplish this:
- First, carefully read the declarations part of your insurance policy.
- Make sure you are reading the current insurance policy document sent by the company.
- Then focus on the deals related to property damage.
- Immediately file for a property claim after going through all the policies.
- You will visit the office and file your claim along with complete documentation.
In what circumstance would a property insurance claim be rejected?
Although you properly filed the report with the insurance company, they may reject your claim. The company can state that they are not responsible for this damage. The following are some of the common reasons for this rejection.
Do we need to be careful about the late submission of the report (after the deadline)?
Every insurance company has a different deadline. Most likely, they usually have a limit of 180 days. After that, they do not entertain the customer in this regard. You need to be careful and fill out the form promptly.
What are the policy conditions?
There are certain conditions that most companies implement. As such, your house must have good-quality locks as well as fire extinguishers. If you fail to have these and face any related issues, it can cause the rejection of your property claim.
Are there any coverage issues?
You need to be well aware of what types of damages your insurance company covers. Your insurance company may not always cover water damage or related issues, and your claim may be denied. Thus, always be careful and choose the right insurance company that covers the most damage.
Do you have incomplete documentation?
The burden of proof against damage is always on the customer. You cannot wait for the company to do it. Always make sure to report the damage along with complete proof. It may include photos, videos, and eyewitnesses.
Is there any unpaid premium?
Customers must always pay their insurance premiums on time. Any delay or missed payment usually puts you on the radar. Thus, some people face such rejections due to incomplete premium payments. Some may have missed many and are not liable to claim any damage to the company.
Are there insufficient preventive measures?
You are bound to take preventive measures after damages. Some people need to abide by the rules, leading to an increase in the extent of the damage. Thus, instead of leaving the property for future damage, you must protect it in every possible way.
How can you avoid having your claim rejected by the property insurance company?
People usually face such rejections and need to learn how to deal with them. It would help if you were always prepared beforehand. After applying for property insurance, make sure you know everything about it. Here are a few tips that will help you avoid such rejections.
- You need to timely inform the insurance company about such a loss. Make sure to apply immediately.
- You should pay all your premiums on time. This will reduce any chance of rejection in the future.
- You should know what kinds of damages your insurance company covers. This will allow you to contact them as soon as possible for the damages they are responsible for.
- You must take protective measures to avoid future damage. Always keep the doors locked and the fire extinguishers in your home. Do not allow your property to be damaged again in the same way as before.
- You must prepare the necessary documentation and file the damage claim with the company. The documents must prove that they owe you reimbursement for it.
What should you do if your property insurance claim is rejected?
You need to be aware of all the above-mentioned things to reduce the chances of rejection. However, if the property insurance is rejected, you must contact your insurer. They will help you with everything and explain why your property insurance claim was rejected. Avoid handling stress on your own and take help from a public adjuster.
If your appeal is being denied without proper reason, then contact the complaint department and follow the process further.