Home insurance offers valuable protection you count on to cover you in the event something bad happens to your home. What could be worse than having your home insurance claim denied? Not much. Having to be responsible for repairing or replacing your home would be a nightmare and something you want to avoid. Knowledge is power so knowing what could cause a claim to be denied can help you to avoid letting those things happen. If you live in Austin, TX, Southwest Insurance Center is the place to go when you are looking for a trusted independent insurance agency.
The claim is under the deductible
Home insurance policies have a deductible. It may be $500 or it can be $1000. If the claim is not more than the deductible amount, the carrier will not pay on it.
The type of damage is not covered
If you have not read your insurance policy you may not realize there are exclusions. Not every type of damage or loss is covered. The most common exclusion is flood damage. Damage due to mold, termites, and other insects is also not covered. You can often add a rider to your policy to cover additional damage.
Wear and tear
Homes age and if your furnace dies because of old age it isn’t going to be covered. If your roof has reached the end of its useful life, any damage resulting from leaks, etc will not be covered. You are expected to maintain your property.
It can happen, you forget to pay your premium and your policy lapses. It would be incredibly bad timing to have a claim you need to file when your policy is not in force.
Knowing what can cause a claim to be denied helps you to make sure it doesn’t happen to you. At Southwest Insurance Center in Austin, TX, we will make sure that as our clients you understand your home policy. To discuss your home insurance needs give us a call for a no-obligation quote.