Some people may find themselves in financial difficulty when an insurance company denies their claim. However, this is likely the last thing you expect, so it can be difficult to digest, not having that financial blanket to rely on when you thought so.
Despite this, there are several reasons why an insurance company might have denied your claim. This article will discuss some of these reasons, providing you insight, and tips on how to avoid being denied in the future.
You had an unrealistic value on a claim with an insurance company
For starters, the insurance company may interpret your claim to be unrealistic regarding value. Therefore, offering less money on the claim, or alternatively, denying the claim entirely. To prevent this, it’s important not to overvalue, keeping your expectations realistic for no surprise outcomes.
Furthermore, the polar opposite can also happen – you may under-estimate a claim, not having enough insurance to cover your losses. To avoid either of these from happening, you should work closely with an insurance specialist, providing realistic estimates to prevent potential disappointment in the future.
Your claim is registered under the wrong category
Second, if your claim is registered under the wrong category, for example, business use instead of a home policy then the insurance company can easily deny your application. You can only claim within the correct category, so be sure to separate your insurance policies clearly to avoid confusion and potential denial from an insurance company.
Insurance companies often limit their policy amount
Some insurance providers will limit the policy amount, not paying more than the agreed sum. If you find your claim denied, this could be one of the reasons why. This is why it’s important to shop around for the best insurance deal beforehand, protecting you financially in the event of an accident or incident in the future.
You withheld information
Finally, if you withhold information from an insurance company, then you risk being denied and losing your claim altogether. You must be honest and transparent, providing the correct details to avoid losing your insurance policy entirely.