Facing a loss can be stressful, but having a claim denied by your insurance company can add another layer of frustration. Although an insurance policy provides a financial safety net during unexpected hardship, encountering a denial of your claim is not an unusual scenario.
Three common reasons for claim denial
Unfortunately, there is no guarantee of getting the financial help you expect even though you have insurance. These are reasons why an insurance company might deny your claim.
Policy exclusions
Insurance policies typically outline specific events or situations not covered. For instance, flood damage may be an exclusion from a standard homeowner’s policy. Meticulously review your policy’s exclusions clause to avoid unexpected denials.
Lack of coverage
Missed premium payments can lead to policy lapses, rendering your claim ineligible. Similarly, operating a vehicle outside the scope of your coverage, such as using it for commercial purposes, may trigger a denial.
Insufficient evidence
The obligation of proof falls on the policyholder. Incomplete or inaccurate information regarding the claim can make it difficult for the insurer to assess your losses accurately. To strengthen your claim, be ready with detailed documentation such as photographs, receipts and police reports when applicable.
A claim denial can be a significant setback, but you do not need to face this challenge alone. Understanding these potential roadblocks may help prevent them and give you a smoother claims experience. With the help of professionals, you may analyze your situation and policy details and explore all options, including appeals.
