5 Reasons Why House Insurance Claims Get Denied

18 Nov 5 Reasons Why House Insurance Claims Get Denied

It’s one thing dealing with the aftermath of a disaster at home, but far worse is when your insurance claim gets denied, leaving you having to cover the cost of repairs or a rebuild. While most insurance claims go through without a hitch, there are a few instances where a claim may be denied. As probably your most valuable asset, it’s important you understand why your house insurance claim could get denied, to ensure your home is adequately covered.

1. An uninsurable event

House insurance is designed to protect you in the event of sudden accidents or damage to your home, covering certain insurable events for the cost of repairs or a rebuild of your home. However, if the cause of damage falls outside the scope of cover, you may find your claim gets denied.

Most house insurance policies don’t cover all events, and there are usually exclusion clauses outlined in the policy documents. You may be able to add-on extra cover with a higher premium to insure against events that would otherwise be excluded, so talk to your NZ Insurance Adviser about extra cover for excluded events, and ensure you understand policy terms, conditions, exclusions and limitations.

2. Wear and tear

Homes are built to last, but without proper care things can quickly go wrong. Maintaining your home to a reasonable standard is vital in helping prevent damage due to wear and tear. If you don’t maintain your property and something goes wrong, your claim could get turned down if the insurance provider determines the damage was caused because of wear and tear, and that negligence on your part resulted in a claim. Ensure your home is well-maintained with a home improvement loan to cover the cost of home maintenance and repairs.

3. Not disclosing the facts

One of the biggest mistakes you can make when filing a house insurance claim, is to submit false information or be untruthful about the nature and scope of the damage. Not being truthful about your home, how it’s used or what the contents are, could result in your claim being denied if the insurance provider discovers that you’re deliberately misleading or providing false information. It’s important to be as detailed and accurate as possible when filing a claim, and never give false information or hide facts.

4. Not claiming on time

When you incur damage to your home and you need to file a house insurance claim, it’s important to do so right away and not to wait. Taking too long to submit your claim could result in it being denied. Check your insurance policy terms to find out what the deadline is for filing claims, and start the claim process as soon as possible to avoid having your claim denied because of failure to file on time.

5. Missing a premium payment

Getting behind on insurance premium payments or letting your house insurance lapse, means you won’t be covered in the event of an emergency and any claims filed will be denied. Pay your insurance premiums on time and in full to keep your insurance policy active. Set up automatic payments so you don’t miss any payments and can file a claim in the event of an emergency.

Get expert insurance advice

Your home is one of your most valuable possessions, which is why it’s so important to protect it with the right house insurance cover. Because even with the best protection measures in place, there are things that can go wrong that are out of your control. Having a house insurance claim denied is extremely stressful at a time when you need help the most.

At Max Insurances, we understand that comparing house insurance policies can be confusing. And without the right advice you could end up paying too much for your insurance cover or not having enough insurance cover. That’s why our Insurance Advisers take the time to ensure you understand your house insurance policy, what’s covered and what’s not. Get in touch if you need help finding the right insurance cover for your needs. Contact us today for a free, no-obligation quote.

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