5 Factors That Can Put Your Home Insurance Claim at Risk
Was your home insurance claim denied? You aren’t alone.
Home insurance companies are always looking for a reason NOT to pay out to their customers. This means even a minor error in the claims process can result in a claim denial. Mind you, insurance companies may still deny your claim even if it is 100% valid, which is known as a bad faith insurance denial.
If you’ve received an insurance claim denial, there are some common reasons why. The bad faith insurance attorneys at Millin and Millin are here to explain some of the factors that can put your claim at risk.
Factors That Put Your Insurance Claim at Risk
1. Your Coverage Lapsed
Lapsed coverage is one of the most common reasons why insurance claims are denied. If you haven’t paid your monthly premium and attempted to make a claim, your insurer will consider your coverage to have lapsed.
Even if you pay immediately after the claim is made, you may still not be covered.
Reduce your risk of lapsed coverage with automatic payments or by setting a reminder to pay your premium on time.
2. The Claim Wasn’t Covered
Unfortunately, there are plenty of events or incidents that just are not covered under a typical home insurance policy. For instance, flooding is often an additional rider that is not covered by your typical home coverage.
Make sure you are aware of what types of events are and are NOT covered so you can better protect yourself.
3. Fraud or Negligence Is Suspected
A vague reason or unusually high cost on your claim can put you at risk for a denial. Your insurer may also deny your claim if they suspect you are lying, in which case, your claim will be listed as denial for fraud.
You may also see negligence listed on your denial claim if the insurer feels that you could have reasonably prevented the cause of your claim.
Reduce your risk of this type of denial by taking a thorough look around your property for potential problems and correcting them.
4. The Damage Is Considered To Be Normal Wear and Tear
Another risk factor for home insurance claim denial is when the insurance company notes that the damage your property suffered was a result of normal wear and tear.
For instance, they may maintain that your damaged siding isn’t because of hail but because you haven’t maintained it. Make sure you keep any proof of maintenance you’ve done and have a bad faith insurance attorney in your corner if they still deny you.
5. The Claim Is Incomplete
Your home insurance claim will be denied if the claim itself is incomplete. If you leave out critical information or fail to properly complete all documentation, this will increase the likelihood of having your claim denied. Even forgetting one receipt for repairs can lead to a denial.
Make sure you include absolutely everything related to your claim when submitting it and be aware that large losses typically require more proof.
If you want to reduce the risk of an incomplete claim, you can consult with a professional or hire an attorney to help you navigate the process.
Trust the Bad Faith Insurance Attorneys at Millin and Millin
A bad faith insurance denial can cause massive financial losses. After all, you paid for the insurance so you wouldn’t be in this situation in the first place. While you can pursue the claims process on your own, having a bad faith insurance attorney in your corner can help you get the money you are owed.
Millin and Millin have years of experience in bad faith insurance denials and we will fight to get you the results you deserve. Don’t wait, contact us to see how we can help you.