Property insurance claims are the most rejected claims in insurance history. Here are some most common mistakes that people made while claiming property insurance. Read them before claims and neglect your chance of rejection.
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Here are the 5 reasons would a property insurance claim be rejected
Property owners buy property insurance as soon as they settle in their property. When it comes to property insurance, you can claim almost any type of damage that may occur to your property. Hence it gives a sense of relief to the owner. No one wants their property to be damaged but if it happens then you will surely claim for the insurance. The worst will happen when your claim is rejected.
There are a few situations in which your claim can reject by the insurance company. So here I will talk about in what circumstances would a property insurance claim be rejected.
Reason#1: Terms and conditions of the policy
Some of the property insurance claims need certain things in the house. Only then do they accept your claims. For example, If your policy has mentioned that every door should have a lock or your house should have a fire extinguisher then they should be present in your house. If these things will be missing then your claim will reject for sure. Not every company has these conditions so check your insurance cover before buying.
Reason#2: Unpaid premiums
If you have not paid your premium on time then it will not possible to ask for a claim. It is the most common reason for claim rejections. Always set reminders for the insurance premiums and pay your premium on time. You will not have to pay the penalty charges of overdoing the premiums so fill them out on time. Your claim process will instantly rejected in this case. It is the first thing that an insurance company sees when a claim request comes to them.
Reason#3: Less damage more claims
If the damage occurs costs a total of $300 and you are claiming $400 for the same loss then the proper insurance claim is rejected. The insurance company considers this type of insurance claim under false claims. Hence claim according to your need. Try to claim the loss or damage that happens due to disasters. These types of claims have a chance of getting higher money. Some other hidden claims are present in these types of losses. You can ask your insurance seller.
Reason#4: Delay in a property insurance claim
There is a certain period in which you can ask for a claim from the insurance company. If you managed to fill the claim under this time then it is good. But if you will not be able to fill under the mentioned time then your claim will reject for sure. So be aware of your insurance policy and keep the claim period in your mind. This will help you to avoid any claim rejection.
Reason#5: The policy does not cover the loss
Every policy has a certain loss that they cover. If you are claiming for the right loss on the right then you will receive the money from your insurance company. But if you are claiming for the non-covered less then the claims will reject instantly. Every policy have different coverages but some of the common loss that every policy have are as follows:
- Snow
- Fire
- Lightning
- Wind
- Hurricanes
These are some common damage covers.
Related: Does Hail Damage Claim Raise Home Insurance Rates?(Opens in a new browser tab)
Conclusion
In conclusion, proper insurance is a must-have. But there are a few circumstances in which a property insurance claim reject. The most important reasons are mentioned above in detail. So check your insurance policy twice before buying. Think of every circumstance that could be possible and check if the insurance policy fits in that or not. If you selected the right policy then do not forget to pay the premiums on time. 80% of the claims were rejected because of the non-fulfilment of the premiums.
