Home insurance is not a luxury; it is a necessity. Home insurance exists to protect your property from natural and man-made disasters alike. When you sign up for home insurance, you do so with the expectation that you will be compensated for your damages when need arises.
But what happens when the insurance company turns down your claim? Before figuring out the next course of action, it is important that you find out why your claim has been denied in the first place. Here are some potential reasons for denials:
Your policy does not cover the damage in question
Home insurance is not meant to cover everything. The standard home insurance policy covers damages that result from theft, flood, or fire damage. Damages like earthquakes and sinkholes may only be covered as add-ons. Your home insurance company will deny your claim if the damage is not covered by your policy.
You did not file the claim on time
In Florida, insurance policies are considered contractual agreements entered into between the policyholder and the insurance carrier. Every policy specifies the timelines within which the insurance company must investigate and settle the claim. You risk having your claim denied if you do not notify your insurance company within the timeframe specified in your policy.
You didn’t pay your premium
Another common reason why the insurance company may decline to honor your claim is when you do not pay your premium. Basically, this means you did not have any coverage when the damage happened.
Home is designed to give you peace of mind knowing that you are covered should a calamity strike. No one wants to have their property insurance claim denied when they need it most. Knowing your rights and obligations when making an insurance claim can help you avoid legal problems.