Insurance Claim Denied | If your home insurance claim has been denied or rejected, you will usually have been told in a letter or email from your insurer or the loss adjuster handling the claim.
The letter or email should have explained the reason why your claim was denied, and referenced the portion of your policy that supports the company’s decision.
If it did not fully explain why your home insurance claim was denied, you should ask your insurer to explain the reason in writing, including the part of the policy it relies on.
Seven reasons why a claim may be refused or reduced
Below are seven reasons why a claim may be refused or reduced:
1. Wrong or incomplete answers to your insurer’s questions
When you take out a policy, answer every question your insurer asks honestly and with reasonable care, including questions about previous claims. Wrong or missing answers can lead to a claim being reduced or refused.
2. Policy Exclusions– Wear and Tear, Gradual deterioration, breakdown in materials, lack of maintenance etc. are usually grounds for a claim not being covered. (however, if a pipe leaks due to wear and tear, the resulting water damage may still be covered, depending on your policy wording).
3. Changes in policy risk during insurance period
If your policy asks you to tell your insurer about certain changes during the policy, such as letting or subletting the property, you must do so. Check your policy for these conditions.
4. Un-occupancy or Un-attended property
If your property is unoccupied for longer than the period set in your policy (often 30 to 60 days, depending on the policy) certain aspects of policy cover may be removed and reduced as the risk of damage is increased with un-occupancy. If you are leaving your property unattended for a lengthy period inform insurers and they will advise on precautions to comply with policy conditions.
5. Non insurable interest
You can only insure property in which you have an interest. Items owned by someone else, such as a laptop belonging to your employer, may not be covered by your own policy, so check with your insurer.
6. Failure to pay insurance premium or direct debit is declined
Unfortunately if you fail to pay your insurance premium or your direct debit is declined, your cover may be affected. Always make sure that you have sufficient funds in your account to cover the premium, it is not worth the risk of having your insurance claim rejected.
7. Late Notification
If you suffer a loss you need to inform your insurance company as soon as possible. Not reporting a claim in good time may lead to your claim being refused.
Insurance Claim Denied? We may be able to help…
In some cases the reason a home insurance claim was declined is clear. In others the decision is not so black and white, and it comes down to how the policy wording applies to what actually happened.
If you believe the decision is wrong, you can ask the insurer to review it and, if you remain unhappy, make a complaint to the insurer. Once you have its final response you can refer the complaint to the Financial Services and Pensions Ombudsman, and time limits apply. Give Insurance Claim Solutions a call, we may be able to help.