In case of an unfortunate catastrophe, having home insurance is essential to safeguard your home and personal property. There are a few main things that home insurance is meant for, these are to protect from loss or damage to the property, and to cover personal liability, or theft.
Insurance policies specify what is covered, and they are required to protect against specified losses in these instances. Insurers also owe a duty of good faith to each policy holder in handling their claim. Insurers are very thorough when they write their homeowners insurance policies. The goal is to make a contract that is valid and has the rights of the company, policy holder, and the exceptions and conditions.
In most cases insurance claims are valid and go through, but they can be denied as well. It's important to be aware of situations that will cause a denial, at least the more common reasons, in order to ensure that you are protected and that any potential claim you make is a good one.
First and probably the most obvious reason is related to the ongoing payment of your premium. Think of home insurance as a service, like other services that you utilize. The coverage is put in place when payment is made. You don't pay, and you could be in a world of trouble. Your part of the contract is to pay the premiums agreed upon, and because of this, the insurance company provides the coverage that you requested from them in your agreement. Any insurance claim will be denied that is made after your policy has lapsed due to your not paying the required premiums owed.
Denials can occur if you fail to accurately represent yourself on the initial application, or if you change the property usage or do renovations that are significant, for example.
Take the time to go over your policy so that you accurately understand your rights, and if you have a claim denied, you will have an idea if there is cause or not. It may be a simple human or computer error in the filing system that resulted in your claim being denied incorrectly. In some cases, a newer claim adjustor may have made a mistake when interpreting the stipulations in your insurance policy.
When a denial occurs, remember to ask the insurance company for an explanation in writing, detailing the reasons for denying the claim. Their reasons should be easily found in your copy of the policy, so go through it and be sure that their reasons match up. If something doesn't seem right, point this out to your insurance company in writing, making specific reference to the parts of the insurance policy that conflict with the reasons given for the denial of your claim.
In the case where a significant discrepancy is found, it may be up to you to prove your side of the argument. Before you can file an appeal, gather evidence to support it. If you believe your claim was denied without reason and should be covered under your existing policy, you can try to file an appeal with your insurance company directly. They will provide details on how to make an appeal if you wish to do so. Get the evidence that you need and any other documents before you make your case for the appeal.
Insurance policies specify what is covered, and they are required to protect against specified losses in these instances. Insurers also owe a duty of good faith to each policy holder in handling their claim. Insurers are very thorough when they write their homeowners insurance policies. The goal is to make a contract that is valid and has the rights of the company, policy holder, and the exceptions and conditions.
In most cases insurance claims are valid and go through, but they can be denied as well. It's important to be aware of situations that will cause a denial, at least the more common reasons, in order to ensure that you are protected and that any potential claim you make is a good one.
First and probably the most obvious reason is related to the ongoing payment of your premium. Think of home insurance as a service, like other services that you utilize. The coverage is put in place when payment is made. You don't pay, and you could be in a world of trouble. Your part of the contract is to pay the premiums agreed upon, and because of this, the insurance company provides the coverage that you requested from them in your agreement. Any insurance claim will be denied that is made after your policy has lapsed due to your not paying the required premiums owed.
Denials can occur if you fail to accurately represent yourself on the initial application, or if you change the property usage or do renovations that are significant, for example.
Take the time to go over your policy so that you accurately understand your rights, and if you have a claim denied, you will have an idea if there is cause or not. It may be a simple human or computer error in the filing system that resulted in your claim being denied incorrectly. In some cases, a newer claim adjustor may have made a mistake when interpreting the stipulations in your insurance policy.
When a denial occurs, remember to ask the insurance company for an explanation in writing, detailing the reasons for denying the claim. Their reasons should be easily found in your copy of the policy, so go through it and be sure that their reasons match up. If something doesn't seem right, point this out to your insurance company in writing, making specific reference to the parts of the insurance policy that conflict with the reasons given for the denial of your claim.
In the case where a significant discrepancy is found, it may be up to you to prove your side of the argument. Before you can file an appeal, gather evidence to support it. If you believe your claim was denied without reason and should be covered under your existing policy, you can try to file an appeal with your insurance company directly. They will provide details on how to make an appeal if you wish to do so. Get the evidence that you need and any other documents before you make your case for the appeal.
About the Author:
Visit http://www.squareoneinsurance.ca/rental-property-insurance to find out more about home insurance and ensure your investment is safe. If you wish to get more information, you can check the home insurance specialists at Square One Insurance.
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