As a matter of fact, Fire damage claims are the most denied claim in the insurance world. Hundreds of thousands of fire damage claims are rejected by the insurance company. They have very specific reasons to deny these claims. Here are reasons insurance companies deny fire claims. This article will give you in-depth knowledge about fire insurance claims rejection.
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5 Important Reasons Insurance Companies Deny Fire Claims
Insurance companies have the full right to deny the fire claims. And there is insurance fire claims that get accepted. Here is detailed a study on this topic. And if you want to get the fire claim then this is a must-read for you. Because then you can avoid those situations that can lead to the denial of the insurance claim.
1. Insurance Fraud
Insurance fraud is the main reason for the denial of insurance. People try to get insurance claims by having a fake fire. For all fire claims the insurance company sends their agent to check the reason for the fire and all. And if they give these statements then you will not get the claim.
- If the fireman says that the reason for the fire is unknown
- If the insurer gets an idea that you or someone else have generated the fire to get the claim
- If you hide the details of the fire and the loss
All these things will work against you and your insurance claim will deny it at the moment.
2. House is not matching the original property records
You have to make sure that once you are buying the property or inherit one then you do have all the claims. Having all claims will ensure that you can file for those damages. If the electricity has been done by your father and now you have the house.
Then you have to do the electricity claim in your favor. Because if the fire breaks out in the basement then your father will be responsible for that. And hence the insurance company will have a chance to deny the claim.
3. Illegal activities on the property
If your property is under some illegal activities then the insurance company will deny the fire claim. For this, they check all the police records. Illegal activities also include using faulty instruments that can catch fire.
So if you have any old electric instrument that can create fire in the house will consider illegal in terms of insurance. So make sure that you do not have such appliances at your home.
4. Unpaid insurance premiums
Make sure that you complete all your insurance premiums on time. If you have any premiums left and before that, the fire broke in your property. Then the insurance company has all rights to deny the claim. So it is important to fill the premiums on time.
These days insurance companies give authority to people by giving them an option for filling the premiums. So you can set the premium amount all by yourself. If you choose less amount then you will be paying the premiums for a long time.
5. Coverage is less
When the damage happens more than the coverage amount then the insurance companies deny the claims. They do not pay the claim in these situations. Because the damage is beyond their limit. So they cancel the whole claim. So it is important to know the limit of damage recovery of your insurance policy.
In conclusion, here are reasons insurance companies deny fire claims. These are some of the common reasons that you will get to hear when your claim is rejected by the company. So if you are willing to fill the insurance claim for fire damage. Then keep all these things in mind. And try to avoid doing any of these. Just by doing this, you will reduce your chance of rejection of the claim.