In what circumstance would a property insurance claim be rejected? There are many circumstances that insurance will become void. One of which is applying the claim promptly.
Have you ever experienced having your insurance claims denied because you have broken the policy? Or you might haven’t read the whole policy of your insurance? Or getting your property insurance denied because of an unknown reason?
Well, whatever the reasons you might think, it is best to read and understand the policies of your insurance, especially about its rejection. It is important to know the tendencies for rejecting your property claim.
This article will discuss some situations or circumstances that could result in rejection and void of your insurance. In addition, you will find here some tips on what you should do. So if you are ready, then let’s get on with it.
Before anything else, when you are getting insurance, it is important to read the declaration page. Understand the details, especially on the section where your personal property is involved. Also, make sure to read the most recent copy of your insurance policy. Ensure that your copy and the insurance company’s copy are the same.
Look for any exclusions with the policy that you could apply to you. Remember that insurance companies always look for ways to minimize your payout, so be alert.
Also, take note always to negotiate nicely to get the results and your well-deserved insurance payout. Finally, be calm and respectful always, especially with the insurance adjusters, and be open to asking questions if there are parts that you don’t understand.
What Circumstance Would A Property Insurance Claim Be Rejected?
So, in what circumstance would a property insurance claim be rejected? You might haven’t noticed that what you’re doing is already a reason for the insurance company to reject your claim.
Reason #1. Late claiming
Claiming duration may vary between different insurance companies. The best way to avoid getting rejected because of this is to apply for a claim promptly. The company will require you to send the paper works within a month of the request. If your company has an online filing system, it is much better since it will be convenient. Take note of the deadlines because these deadlines are troublesome if you miss any of them.
Reason #2. Excluded condition on the policy
You may have or haven’t read your policy, but there are instances that they may reject your insurance because of some exclusions to the policy. Some of the most common exclusions are caused by natural phenomena such as floods, earthquakes, or erosion.
These exclusions are most commonly found in property insurances. However, there is also wear and tear of the property or damage due to faulty construction and design of the infrastructure.
Reason #3. No payment for insurance premiums
Another reason you lose your insurance claim is that you haven’t done your part in paying the policy’s premiums. The insurers can cancel your insurance policies in the middle of the policy period if you have failed to pay on your part.
If your insurance has been canceled, ask your insurer for advice on whether they have sufficient reasons for doing so or what appropriate steps they made on a legal basis. If you disagree about the cancellation, you could apply for a complaint to the AFCA.
Reason #4. Suspicious or false claim
Some insurer wants to prove that you intended to deceive the insurer or commit fraud. If fraud is the case, the insurer will no longer be responsible for granting you insurance cover. So if your insurer is investigating you, try to remain calm at all times. If you are being asked, take your time to answer each question. If your conversation is being recorded, ask for a digital copy for future purposes.
Be wary and alert not to sign anything you haven’t read, understand, or are sure of. There were many cases of insurance claim rejection when some of them signed without fully understanding what is written in the paper.
What I could best suggest is you seek a bit of legal advice before and after the interview. It is to be sure that you are not being fooled or taunted to lose your well-deserved insurance claim.
Reason #5. No precautions after damage on the initial loss
Some instances in insurance claim rejection are what happens after the destruction of the property. Some cases include the lack of precautions after the property has taken damage.
For example, if a burglar has broken your window, you thoroughly damaged the window because you know the insurance would pay for it out of anger. Then absolutely no, this can threaten your insurance claim.
After the damage, make sure to document everything. Take a photo of the damages and send it promptly to your insurer to make sure your property damage will get compensated.
So if you’re wondering in what circumstance would a property insurance claim be rejected, you have these ideas to start with. Although what I have written here is a general reason for rejection. It is still best to read your policies before signing them. Each insurance company may have included more exclusions, so you have to watch out for it. Also, make sure to understand what you have read.
You don’t want to pay something you won’t use for when you need it, right? So to sum it up, after the damage happened, document it and file an insurance claim promptly.