Having a major home insurance claim denied would be a big problem for most homeowners. They get their homes and belongings insured so that they do not have to face the cost of putting it all back together on their own.
Often, insurance companies are motivated to control their costs in any way that they can. They may try to find a reason to reject a claim in whole or in part, reducing the amount that they have to pay out.
The most effective way to prove your claim should be covered in full is to meticulously prepare your insurance claim. These five steps will help you support your claim and avoid issues as best you can.
#1 Document the Damage
One of the first steps you should take after your home is affected by a loss is to document the damage. Take photos or even videos of damage to the structure of your home as well as lost and damaged belongings.
An insurance adjuster will make their own assessment of the extent of the loss, but if there is a disagreement down the road, it is important to have your own documentation.
#2 Get a Second Professional Opinion
Part of the insurance adjuster’s job is to assess the extent of the damage done to your home and create a list of repairs that need to be made. If you disagree with that assessment (i.e., you believe that there are more repairs that should be made), you may want to bring in another contractor or engineer to make an independent assessment. This is crucial evidence that can have an impact on putting your home back to its pre-loss condition.
#3 Prove Ownership: Receipts, Photos, and Video
When it comes to your belongings, in addition to taking photos and videos of damaged belongings, you may also want to have proof of ownership ready. You may want to see if you can gather together receipts from when you purchased them or go through social media or family photos that show belongings you have in your home. Everything can help when you are trying to prove that you owned certain belongings and that they were lost or damaged. In the case of a very large list of items, or certain expensive items, having photos or receipts to show proof of ownership will help clear up any concerns the insurance company may take with this part of your claim.
#4 Prove Good Upkeep and Maintenance
One common reason for insurance companies to reject a claim is that the homeowner did not keep their home in a state of good repair. Negligence when it comes to upkeep can result in damage that could have been avoided, and the insurance company uses this as a reason to reject claims.
Keep invoices and photos that prove maintenance and repairs around your home, especially if you have had work done on your roof. It is important to inform your insurer ahead of time when you make major renovations or repairs, as this may affect your coverage.
#5 Make Sure You Paid Your Premiums
Another reason the insurance company can reject your claim is if you were not up-to-date with your premiums. If you do not pay your premiums, your home is not insured, even if you thought you had a policy.
There is not much you can do after the fact if a loss occurred when you were not current with your premium payments. Make sure you always pay those bills when they are due, and keep receipts for those payments in case it comes into question.
