In what circumstance would a property insurance claim be rejected? Insurance claims can be likened to a necessary evil. The process involved can be a tad long and tedious, especially when you are dealing with the fact that something dreadful has occurred to your property. However, it is the quickest method to get your life back in order!
This post will examine the question:
There are various circumstances where your property insurance claim can be rejected or denied. Such circumstances range from late filing, suspicion of fraud, etc.
In this post, we will examine these circumstances one after the others, and ways to go about them.
Making a Claim on Your Insurance
In what circumstance would a property insurance claim be rejected? Before giving a more in-depth answer to this question, it’s important we look at the various steps involved in making a claim on your insurance.
The first step is to read your insurance policy’s declarations page carefully. Pay close attention to the section on personal property. Check that you have a current copy of your policy and that you and the insurance provider are both using the same version.
Keep in mind that the insurance company is driven to reduce its payout. To receive the results you deserve, you may need to negotiate intelligently. When interacting with insurance adjusters, always maintain a calm and courteous demeanor.
If you’re puzzled, don’t be hesitant to ask questions. You have the right to interrogate the insurance agent until you get the whole picture. If you do not want to take that route, you can employ a public adjuster to assist you.
Most often than not, the insurance adjuster must provide a substantial reason why your insurance claim is denied or rejected.
At this point, it is necessary to recognize that no two property insurance plans are the same. As a result, what applies to your neighbor may not apply to you, and vice versa.
Thus, do not rely on the experiences of others. Instead, grasp the terms and conditions of the insurance you’ve acquired straight away.
In What Circumstance Would a Property Insurance Claim Be Rejected
So, in what circumstance would a property insurance claim be rejected? Let’s review some of these circumstances:
1. Late Filing
This is probably the answer to the question, in what circumstance would a property insurance claim be rejected? Generally, there is no fixed time for making an insurance claim. However, to be on the safe side, it’s best to file a claim as soon as possible. The company will expect you to submit the paperwork within a month of receiving the request.
It is much better if your insurance company has an online filing system because it is more convenient. Please take note of the deadlines because missing any of them will cause problems.
2. Excluded Conditions on The Policy
As mentioned earlier, no two property insurance plans are the same. Thus, if you are expecting that your claim will follow the same route as that of a neighbor/friend, you might be in for a big disappointment.
It is always recommended that you read your insurance policy thoroughly and take note of any exclusions. For instance, there are times your insurance claims are denied due to policy exclusions on natural occurrences such as floods, earthquakes, and erosion. Most of these exclusions are typically seen in homeowners’ insurance policies.
3. Non-Payment for Insurance Premiums
Another reason your insurance claim is denied is if you have not paid your share of the policy’s premiums. If you fail to pay your insurance premiums, the insurers have the right to cancel your policy in the midst of the policy period.
If your insurance has been terminated, consult with your insurer to see whether they have valid reasons for doing so and what legal measures they took. If you disagree with the cancellation, you can file a complaint with the AFCA.
4. Suspicious or False Claim
Some insurers will have you submit evidence that you didn’t intend to deceive or defraud them. If you commit fraud, the insurer will no longer be obligated to provide you with insurance coverage. So, if your insurance is looking into you, try to be cool at all times. Take your time answering each question asked. If your talk is being taped, request a digital copy for future reference.
In a circumstance like this, we recommend that you seek legal counsel both before and after the interview. This is to ensure that you are not duped or mocked into giving up your well-deserved insurance claim.
5: There Were No Safeguards Taken After the Initial Loss Due
Does this sound a bit absurd? Well, it shouldn’t. Some examples of insurance claim denial include what happens after the property has been destroyed. Some examples include a failure to take safeguards after the property has been damaged.
For example, if a thief has broken your window and out of anger you damage the window since you know the insurance would cover it, you might end up jeopardizing your insurance claim.
6. Damage Is Not Properly Documented
The property owner must establish loss before submitting a claim. As a result, it is critical to document it thoroughly. You must submit even minor data such as the date and approximate time of loss, attach photos and videos of the damage, describe the asset’s state previous to the damage, and so on.
Only with complete documentation of a covered loss can you be certain that the insurance provider will fulfill its end of the bargain.
From this post, you can understand the various circumstance that a property insurance claim can be rejected. At this point, we must reiterate that deliberate losses are not covered by insurers, only unintentional losses.
Furthermore, you are expected to follow all insurance requirements, such as implementing preventative measures and paying premiums on time. We hope this post satisfactorily answers the question, in what circumstance would a property insurance claim be rejected?