What To Do When Your Home Insurance Claim Is Denied?

Having a home insurance claim rejected can be a devastating experience. To ensure that you don't land into any such situation in future, here are a few simple tips that you must follow:

1. Keep complete & accurate records of everything. Be it the records of the conversation, any receipt, or letters or emails (if any) you sent or received from your insurance provider, you must have it all at the time of filing the claim.
2. Take your time out to cross-check the terms and conditions of your policy and especially view all the claim rejection related clauses to determine whether it applies to your case or not. If not, you must discuss it with your insurance company to improve the situation.
3. In many cases, the cause of the damage is not properly communicated to the insurer, thereby leading to claim rejection. If you find this in your case, draft a letter to your insurance provider explaining him about the error. Try to be specific in your letter and emphasize only on the incorrect information described in their letter.
4. If you feel that your insurer has delayed the process of handling your claim or has not done fair dealing, you should file a complaint with the department of Insurance for your state.

Taking action against your insurance provider will be tough though, as they have years of expertise in the dealing with the claim rejection cases. Consulting a seasoned lawyer will help you fight for your denied home insurance claim with rather ease.

The major reasons that can lead to claim rejection include:

1. There is no coverage for the cause of loss. There are many home insurance policies that cover for different conditions, and if the damage to your home was not prompted by a covered condition then your insurance company will not pay for your loss. For example, if your policy doesn't cover for the earthquake and your home was destroyed by an earthquake then you will not get money from your insurance carrier.
2. The loss occurred outside the policy coverage period.
3. You failed to fulfill the condition of coverage in the policy. For example, if you did not take measures to prevent the further damage, didn't pay the insurance premiums on time or were not cooperating with the insurance company, your claim will be rejected automatically.

To avoid getting into such hassles, it is good to get your home insurance policy from a reputed company which provides all the details of the policy premiums, coverage, claims, etc. beforehand. HDFC ERGO is one such company that offers a comprehensive list of home insurance policies to choose from. It has easy home insurance claim procedures and offers excellent discounts on policy based on your age and profession.

Continue

Types of Weather Related Claims Home Insurance Companies Can Deny

With an active spring season set to hit large regions of the country over the coming week, damage to property is likely to occur. Although, home insurance plan can help compensate some of the costs associated with repairing a weather-damaged home, but it’s important to understand what policies cover and what they don't before making a claim.

Owning a home insurance policy that includes coverage for storm damage or flood damage doesn’t necessarily mean every claim will be accepted. To prepare for the unplanned weather strikes, homeowners should to be cognizant of these 6 home insurance loopholes following severe weather conditions.

#1 Flood Damage

Generally, many homes in flood prone area are ineligible for flood insurance and living outside of a flood area also doesn't necessarily ensure coverage. Thus, buyers have to understand that houses may be considered to be at flood risk despite not being near water. Each insurance company determines which areas are at risk. Categories like 'flood plain, fringe flooding areas and susceptible zones will affect insurability, rates, and policy requirements. Therefore, it is recommended to find a local, knowledgeable advisor to help select the right flood policy and criterion.

#3 Empty Homes

Some insurance policies don’t accept the weather related claims if the damage to the property is being made while the homeowner is away, even if the insurer is informed about the damage beforehand. However, many general insurance companies say a house vacant for maximum four days can still be covered. The best method, a home owner can apply is to talk to the broker while heading for a lengthy vacation. In some situations, additional requirements can be purchased to help extend coverage. Turning off the water and having a regular check by someone while you’re away could make the difference in being covered or paying out of pocket.

#4 Renovations

If you plan to renovate your home, it is wise to update to your insurance policy, because your insurer may deny your claim because of recent home remodels that were not mentioned before in the policy. Many people renovate their home with a new kitchen, roof or a bathroom etc. and forget to inform the insurance company with the new modifications they have done to their home, as a result of which they might not get covered when the weather strikes.

#5 Snow Damage

Homes in areas prone to heavy snowfall may not be covered for snow damage, so it is recommended to check a policy carefully for snow coverage prior to purchasing a home insurance. Areas where frozen rain is common may have different stipulations, or require a separate policy to get covered for losses.

#6 Water Damage

Any water damage to the home from the immediate effects of a storm is probably covered by many insurers but any damage from a longer-term leak in the roof will not. Therefore, it is advisable to go for a regular roof and window maintenance to insure coverage in future.

To sum up:

As whether strikes and unexpected and abrupt, it is better to check the Home insurance loopholes beforehand. To assure 100% coverage from weather catastrophes, review your policy with a professional insurance broker. Also, make sure your policy is up-to-date and any areas of concern are addressed prior to making a claim.

Continue