Unfortunately, your home insurer can deny your claims, even when you think you're covered. The real question is - why? Here are the 5 reasons to explain why your claim may be denied.
1. You've missed your payments.
You are given a one time grace period for missed payments. When a pattern of missed payments begins to form, your claim is more likely to be denied because of that.
2. You weren't covered for that type of damage.
Another reason is because the damage that happened in your home is not covered by your policy. Though all-risk insurance policies do exist, they don't cover "all risks."
You can buy additional coverage which does include these damages such as flooding, illegal activity, insects and rodents. It is important to ask these questions upfront before choosing a policy.
3. You were over your cap or under your deductible
If the cost of your repair is under your deductible, your claim will be denied.
For example, the cost of repair was $300 but your deductible was $1,200. If the cost of repair was estimated at $1,500 but you're capped at $600, your claim will also be denied.
4. You didn't disclose all details of the damage
Regardless of how the damage came about, if you didn't disclose everything, your claim will be denied once insurance adjustors investigate.