4 Ways to Avoid Having Your Homeowner’s Insurance Claim DENIED


homeowners insurance claimWhen tragedy strikes your home it can leave your world completed rattled, and having to deal with filing your insurance claim is stressful enough without added complication. Unfortunately, there are many mistakes that homeowner’s make that render their claims null and void, right at the worst possible time. You can click here to visit the HBF website & check out their home insurance options.

However, the savvy and smart homeowner knows how to avoid these mistakes at all cost, follow procedures, read the fine print, and have that insurance check delivered without any fuss. If you’re interested in being one of these homeowners, here are a few things to check off of your homeowner to-do list!

            1.  Read Your Policy’s “Fine Print”

When obtaining a new policy, for any form of insurance, there’s quite a bit of paperwork involved and it’s easy to cut corners. However, taking a few extra minutes to actually read through the policy could potentially save you the cost of a house—worth it, huh?

Pay extra attention to your policy’s “Exclusion Clause” and note what is not covered by your policy; typically this is flood and earthquake damage. You can obtain coverage for these by paying extra, and if you live in an area that floods or gets rattled by earthquakes frequently, it’ll be a good idea to get that coverage.

            2. Don’t Lie On Your Insurance Application

This is applicable advice for any form of insurance application, as all insurance companies want to save their money. The second that they receive your claim, they’ll begin investigation procedures to try and discredit it, so they don’t have to deliver a payout.

So, not only will you not receive your claim, but if you’ve gotten away with having previous claims fulfilled without them catching the lie, the insurer will usually sue you for the amounts previously paid—yikes!

             3.  Pay Your Premiums—and On Time!

Unfortunately, tragedy can strike at any time and doesn’t it always seem like it happens right at the worst possible time? Don’t let this be the base with your homeowner’s insurance policy. Keep up with your premiums, and pay them on time.

Let’s say you’re a month behind on your payments, and tragedy strikes; your insurer has the ability to deny your claim, regardless of if you paid on time for the last ten years.

             4.  Don’t Be a “Negligent” Homeowner!

You might think, “Whew! My house was destroyed by a hurricane, so now I don’t have to deal with that pesky termite problem and can just buy a new house with the insurance money!”, and you’d be wrong.

Your insurance company will absolutely conduct a full investigation of your home and if they stumble upon termite damage, your claim will be denied due to negligence—even if the hurricane would have destroyed the house regardless.

Readers: Have you filed a homeowner’s insurance claim recently?  How was the experience?

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8 Responses to 4 Ways to Avoid Having Your Homeowner’s Insurance Claim DENIED

  1. Glen @ Monster Piggy Bank 04/10/2013 at 3:16 am #

    I always get strange looks from people whenever I take the time to sit back and read the fine print on contracts. I think most people just accept that you will just sign it and be on your way.

    • Paul 04/10/2013 at 8:04 pm #

      I’m with you Glen, I do my best to read most of what I am signing.

  2. Alan@escapingmydebt 04/10/2013 at 7:22 am #

    I was not aware of the negligent clause. It has been a while since I shopped for insurance, kind of doing it now so this is helpful and I definitely will be reading the fine print before signing.

  3. Brick By Brick Investing | Marvin 04/10/2013 at 12:00 pm #

    I feel as we move forward we’ll be doing a whole lot more fine print reading. I couldn’t having my claim denied after paying all that money for all that time.

    • Paul 04/10/2013 at 8:10 pm #

      It is in your best interest to read your insurance policy disclosures. Even if your agent did not disclose specific exclusions, the policy spells out what is covered.

  4. Pretired Nick 04/11/2013 at 7:20 am #

    I’ve pretty much decided I’m not making a claim unless it’s a catastrophic incident. The risk of them dropping the policy or jacking up the rates is too great. But it certainly wouldn’t hurt to go reread the policies! Good reminder!

  5. John@MoneyPrinciple 04/11/2013 at 3:15 pm #

    Good points for sure. But wouldn’t it be nice if all policies were worded the same so you could compare them properly. Maybe it’s too much to ask,

    • Paul 04/13/2013 at 10:22 am #

      That would be asking too much John! Insurance companies count on consumers not understanding the fine print!

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