There are quite a few reasons why an property damage claim would be denied by the insurance company. However we are going to look at some common ones below. Insurance companies provide coverage, so let’s talk about when and why they will say a claim is denied.
1. Intentional/ Pre-Existing Damage – Damage that is caused by the homeowner intentionally or damage that was discovered and left untouched. Property Damage Insurance only covers damage that was sudden and accidental Legal advice will help the homeowner potentially fight the insurance claims for denial.
2. Lack of proper coverage – Many times a homeowner will submit a claim without knowing exactly what they are covered for. Some homeowners are wise to have more coverage depending on where their home is located (ie. flood, hurricane, tornado coverage).
3. Condition, Limit of Insurance, or exclusion clause – Some insurance policy will include condition or exclusion clauses which require a homeowner to keep their home in a certain condition to be able to make legitimate claims recognized by the insurance company.
4. Lack of Photo and/or Document support – After filing an insurance claim, the Insurer sends out an Request For Information (RFI) which includes documents and photo support. This validates damage, and what the insured needs to be reimbursed for. Without this Information, it can affect the approval or denial of the insurance claim.
There are more reasons why an insurance company will deny a homeowners claim. The important part is to remember a policy allows for an investigation for any compensation after experiencing covered property damage.