Why was your homeowners claim denied?

By Brittney Meredith-Miller 

The Insurance Information Institute reports 6.1% of insured households in the United States filed a homeowners insurance claim in 2020 – up from 5.29% in 2019.

The most common causes of homeowners claims, according to Experian, are:

  • Medical payments: 0.3% of claims, with an average cost of $7,147
  • Theft: 0.6% of claims, with an average cost of $4,415
  • Bodily injury and property damage: 2% of claims, with an average cost of $30,324
  • Miscellaneous property damage and financial incidents: 8% of claims, with an average cost of $820 to $6,663
  • Water damage and freezing: 19.9% of claims, with an average cost of $11,650
  • Fire and lightning: 23.8% of claims, with an average cost of $77,340
  • Wind and hail: 45.5% of claims, with an average cost of $11,695

Trust that they have been sold the appropriate policy and will be protected by their carrier when disaster strikes are things most consider heavily when choosing where to purchase a policy. The truth is, however, not every incident where damage occurs to your home will result in a paid claim; no matter how comprehensive your coverage may be.

Let’s examine the eight most common reasons insurers deny homeowners claims, according to Credible.

  • There was a lapse in insurance coverage due to non-payment.
  • You waited too long to file the claim.
    Some insurance carriers require you to file a claim within a certain period of time after the event, so it’s important to file claims as quickly as possible.
  • The event that caused the damage isn’t a covered peril in your policy.
  • You didn’t make temporary repairs after the event occurred.
    Some insurers require temporary repairs (like covering a damaged roof with a tarp or covering a broken window) to prevent further damage from occurring until a permanent repair is made.
  • Your insurance claim is incomplete.
    If there isn’t enough evidence or documentation to back up your claim, it may be denied.
  • The damage is considered normal wear and tear, which is not covered by homeowners insurance.
  • The damage or property loss was caused by negligence.
  • The insurer suspects fraud.
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