When Can a Home Insurance Claim Be Denied?

Although home insurance claims aren’t frequently denied, it happens more often than you would think. Often, home insurance claims are denied as a result of a misunderstanding between the homeowner and their insurance policy. 

Many homeowners purchase a home insurance policy and mistakenly think that they are covered from any accident or disaster that may befall them. Unfortunately, this isn’t quite true. A basic home insurance policy has certain exclusions and limitations that could leave you with unexpected expenses if you haven’t purchased the right additional coverage to protect against losses. 

The Damage Is Not Covered 

One of the most common reasons a home insurance claim is denied is because the damages to the home are not covered under the home insurance policy. Most home insurance policies exclude coverage for flood and earthquake damage. If you live in an area with a high frequency of either of these natural disasters, you should purchase additional insurance to cover your home and personal belongings. 

The Damage Occurs Due to Negligence 

Even damage that would normally be covered will not receive compensation if that damage is caused by negligence. For example, if your roof has shingles missing and damage to one area, and that area is destroyed during a hailstorm, the damage likely won’t be covered by insurance. Even though hail is covered under dwelling insurance on your home insurance policy, the claims adjuster may see that you failed to fix your roof, thus causing the damage to be worse than it would have been. In this case, your claim could be denied. 

You Haven’t Paid Premiums 

Of course, failing to pay for insurance can result in insurance claims being denied or a policy being cancelled completely. Be sure to set up automatic payments when you can to avoid accidentally missing a payment. You should also frequently check with your insurance agent about possible discounts that can save on your monthly premiums. 

Upgrades Were Not Communicated 

Say you just redid your entire kitchen, complete with marble countertops and new light fixtures. A bad electrical fire breaks out, damaging half the kitchen and everything in it. If you did not notify your insurance provider of these changes, it is likely that a claim for the countertops and new fixtures will be denied. This is because the new value of your home was not calculated in your insurance, and thus will not be considered for compensation.