Home Insurance Articles
Three Ways In Which A Home Insurance Provider Will Challenge Your Claim And How To Be Prepared
2010-05-17
A quality home insurance policy is the wisest way to protect a home. Should the unthinkable happen and the home is damaged and needing repairs, it is good to know that those expensive repairs are covered by insurance. A homeowner's worst nightmare is having a home insurance claim denied after disaster has struck. There are three common reasons why claims are challenged and ways to prevent them.
One of the most common reasons a claim is denied is due to misunderstanding. This most frequently happens when the owner doesn't fully understand his coverage. For example, a small stream swells and floods the owner's basement. The basement is finished with carpeting and paneling. The floodwater ruins both along with some of the furnishings. The damage is quite extensive and expensive to repair. The homeowner's claim is denied because his policy doesn't cover floods. The way to avoid this is to carefully examine the policy, and then go over it point by point with the home insurance provider until it is completely understood. In this case, additional insurance would be purchased to cover this type of disaster.
Failures to keep a home properly maintained can also result in a home insurance claim being challenged. Failure to make necessary repairs can often result in a bigger problem. A leaking pipe in an upstairs bath, if left unattended, can cause water damage to the ceiling in the room below. Insurance companies regard this as negligence on the homeowner's part and do not insure against it. An accident causing damage with no attempt to prevent it from getting worse could also result in a denial. For instance, a window is knocked out as a result of a storm and nothing is done to prevent water from blowing in and damaging the furnishings.
There is another type of homeowner negligence that results in challenges. A condition of the policy might be that in order to cover the contents of the garage, it must remain locked. If thieves steal all the homeowner's expensive tools and it's proven that the garage was unlocked, the claim will be denied. It's important to be aware of all conditions in the policy and act in accordance with them.
In order to have the best insurance coverage possible, it is most important to understand what the policy covers. It is often possible to purchase additional coverage if it is deemed necessary. Taking ordinary care of the dwelling and following all conditions of the insurance policy will ensure that claims will be paid. The home insurance provider can explain the details of a policy. Make sure to talk over your policy with them.