Have you been declined for a home insurance claim?
A home insurance is taken in order to protect one against the loss they may incur in case of a disaster or damage in their homes. Some of the risks that may be insured against include earthquakes, fire, or hurricanes. However, even with these covers, not all claims are compensated. Sometimes, the home insurance company may deny the policyholder their claim due to any of the following reasons.
Whenever a homeowner takes up a policy, it’s his responsibility to take care of his home to avoid any damages that may occur through negligence. A home insurance company can only compensate one for damages that may occur accidentally. For example if there is a fire in your home caused by an electrical fault, it can be taken as accidental and you can be compensated. However, if the fire is caused by gas leakage, then it can be taken as negligence and the insurance company may deny you the claim.
When applying for an insurance policy, one is required to present the truthful facts. If damage occurs and the facts you gave differ from what is given at the time of loss, then your claim will be declined. Hence, it is very important for the applicant to give the real facts when applying for a cover.
A policyholder has the full responsibility of paying premiums and on time. Whenever a policyholder does not pay either on time or totally fails to pay and the policy lapses, then they don’t stand a chance to be compensated when there is damage. No matter how long you’ve had the policy, if there is damage and the policy is lapsed, the company can deny your claim.
Not all risks are covered by every insurance company. For example, damages caused by terrorist attacks may not be covered by home insurance companies. However, insurance agents have the mandate to let you know what their company covers and what risk they don’t cover. Therefore when taking the cover, you are aware and also they can give you an alternative on how you can cover what they can’t, for you to be fully protected. Floods, for example, aren’t covered by home insurance and cannot be compensated.
Professional use of damaged home
When one runs a business from home, they are obligated to take up the appropriate commercial insurance cover no matter how small the business is. Your damaged property can only be compensated if in your home insurance policy, there are provisions for endorsements that cover all your assets. Otherwise, the claim will be declined.
It is therefore important to know all that your home insurance policy covers and make all the necessary arrangements to cover your specific needs for you to be fully covered. You can also decide to take alternative covers for what is not covered in home insurance to avoid having your claims declined. An insurance agent can assist you in doing this efficiently.