Homeowners insurance is essential for anyone looking to protect a home from harm or mishaps. Indeed, most banks and other lending institutions will require proof of homeowners insurance before they will grant a mortgage, and it often must cover specific areas of the home or have a specific percentage of the total value of the house in coverage. For homeowners, finding reasonable homeowners insurance can be relatively straightforward thanks to the budding Internet presence of home insurance sites and their ability to quickly and easily get customers not only quotes, but official policy documents. However, while homeowners insurance is easier to obtain than ever, it is making a claim on a policy-and the dreaded rejected home insurance claim-that gives homeowners pause.
There are a number of reasons that a homeowners insurance claim may be rejected, starting with the simple fact that what is being claimed may not actually fall under the coverage limits of the policy. This can happen when a homeowner is not fully aware of what the policy does and does not cover, or makes assumptions based on promises made by the company or an insurance agent. Another reason that a home insurance claim may be rejected is because a homeowner has not properly documented the value of the items claimed to be damaged or stolen. Insurance companies are very particular about paying out for items they cannot be sure were in a home, and a homeowner must be prepared with documentation.
A rejected home insurance claim can also occur because of fraud, even if it is unintentional. If a homeowner states that he or she had three televisions in the home when it was destroyed by a fire, but in fact, only had two (a mistake made in the panic caused by seeing the home destroyed), the claim may be rejected for fraud if the company finds the remains of only two televisions in the wreckage of the house. Make no mistake-companies are very particular when it comes to fraud and take all necessary steps to ensure that they are protected. This means that they will do their very best to determine exactly what is lost in any damaging event to a home and will aggressively pursue those that they believe are lying.
While rejected home insurance claims are certainly well within the realm of possibility, homeowners simply need to be careful and particular both when choosing a home insurance plan and when filing a claim. By documenting all valuable items in a house and being aware of the details of the policy, homeowners can spare themselves the headaches associated with a rejected home insurance claim.