Have you ever been in a circumstance where you were counting on your insurance company to pay the claim but were ultimately shocked when they refused to do so and revealed some reasons that you were unaware of. Then you should continue reading to know exactly what went wrong.
See, Insurance Policy is necessary for every human being to live peacefully and freely in this world. Also, Insurance can protect you from some major losses which can be inevitable in the near future.
But there are so many reasons when your insurance company refuses to pay a claim, take a look at these top 7 reasons when your insurance company refuses to pay a claim and keep it in mind, so that you can better prepare yourself for what might happen if it does!
Hopefully, this list will provide you some clarity and help you understand the next steps you need to take.
Here is the list of top 7 reasons when your insurance company refuses to pay the claim.
- 1. The Damage is Excluded
- 2. You Didn’t Present Enough Proof
- 3. Not having adequate cover
- 4. Failed To Inform The Insurance Company
- 5. Your Insurance Has Expired Or Lapsed
- 6. Payment lapse
- 7. Not Seeking Immediate Treatment
- Conclusion :
1. The Damage is Excluded
Exclusions are a part of all insurance policies. For instance, most home insurance policies don’t cover flood damage. Some have more peculiar exclusions; for instance, you cannot sue for damage caused by nuclear fallout. Your claim will probably be rejected if the damage to your property was caused by one of the exclusionary events.
However, policy exclusions can also be utilized by insurance firms. When the majority of the harm was not brought on by the excluded event, they can claim that the damage was caused by it. Insurance claims can get challenging at this point.
Talk to a trained and licensed public insurance adjuster for assistance if you are handling a challenging insurance claim.
2. You Didn’t Present Enough Proof
Every year, fraud costs insurance companies billions of dollars. Insurance companies need proof to stop fraud. For instance, they might want images and videos of the damage or invoices attesting to the cost of specific things.
Most of the time, insurance companies are only doing their due diligence.
However, if your insurance provider is requesting too much documentation, therefore they might be acting dishonestly. Think about contacting a public adjuster or insurance lawyer.
3. Not having adequate cover
You might be tempted to choose the lowest insurance policy you can find when applying, but this usually results in a limited level of coverage.
It will be too late to change your coverage if you get into an accident and discover that you are not protected for the kind of accident you had. Simply put, your insurance provider won’t pay out on your claim.
4. Failed To Inform The Insurance Company
You are expected to immediately inform your insurance provider that you have been in an accident.
Your insurance provider should be one of the first calls you make following the event, for example, if you were hurt in a car accident. Waiting more than a week to report the accident will result in the insurance provider denying your claim and claiming they were unable to investigate the incident.
5. Your Insurance Has Expired Or Lapsed
It’s not always the case that coverages are automatically renewed, and policyholders occasionally forget or omit to do so. You could lose thousands of dollars due to a denial caused by a simple error.
Make sure to carefully read the fine print when buying insurance so you know what coverage renews automatically and what you have to do manually.
6. Payment lapse
You may be driving without coverage if you don’t make your payments on time since you will lose the ability to use your insurance. Insurance providers often don’t mind delaying payments on occasion, but if it becomes a pattern, they will stop accepting late payments and withdraw your coverage.
7. Not Seeking Immediate Treatment
It is essential that you get medical attention right away if you are hurt after a car accident or during another event.
If you wait a week or more to get medical care, the insurance provider could use the delay as justification to reject your claim. They can argue that since you delayed seeking medical attention, you were not harmed.
After reading this article, you should now be aware of the top 7 reasons why your insurance company may refuse to pay out on a claim. While some of these reasons may be due to simple errors on your part, others may be beyond your control.
Either way, it is important to be prepared for the possibility that your insurance company will not honor your claim. By familiarizing yourself with the most common reasons for denial and taking steps to avoid them, you can give yourself the best chance of getting the compensation you deserve.
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