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Why Your Claim Was Denied. House and Auto Edition

Photo by Aiony Haust on Unsplash
Photo by Aiony Haust on Unsplash


First off I am sad to hear that you had a claim was denied. I understand that this is a very stressful situation. It might also be a situation that is placing financial burdens on you and your family. But if your claim was rightfully denied there are reasons for that denial. And the important thing that you can do is learn from this experience and make sure it does not happen again.


Today we will go over the three most common reasons that I have seen claims be declined for house and auto insurance. If I was going to go over the other types of insurance. We would be here all day, and I would most likely have to write a novel.


1. You Had Thought You Had That Type Of Coverage.


This is not your fault per se. Unless you bought your policy online without an agent to guide you through this process. Or you did not talk to your agent to file the claim. While agents are not adjuster's we do have an insurance license for a reason. We can help walk you through the claim process. That is our job and our duty.


2. The Loss Was Caused By Wear And Tear.


Most insurance policies cover accidents only. For example, if your roof on your house was damaged by wind and hail chances are that your insurance policy would pay. But if your roof started to leak and it was because you have not had your roof replaced in the last 15-20 years then you might have an issue getting your insurance policy to pay for the any of the loss. You would be lucky to get the insurance company to cover any of the loss. In that situation, you better hope that your adjuster is feeling very sorry for you.


3. Your Name Is Not On The Policy.


This mostly applies to auto insurance. There are common reasons a name is not added to a auto policy.

  1. A has their driver's license but the parent “forgot” to place the child on their auto insurance. If you truly did not know to add your kid to your auto policy you need to do so. For many reasons. But here are two very good reasons.One, your claim could be denied, or the insurance company will pay the claim and then add your kid to your policy which will, of course, increase your premium. Two, in the most extreme situation, you could be charged with insurance fraud, in theory.

  2. Your current agent is not good. Just like with any other profession there is in the world. There are good insurance agents and bad insurance agents. The agents are your advisers and will tell you the truth, even if you do not like that truth. The bad agents are usually not bad on purpose. They are typically new to he insurance world, or are just unknowing of the consequences to the client. And is just trying to save you a few bucks. Even though though that action will cost you a lot more money then the agent will save you leaving a family member off of your policy.

  3. You just got married or a family member has moved in within you. Your Auto policy needs to have every member of your household on the policy that is 16 or older. Even if they have their own policy. Those family members that have their coverage still need to be on the policy but can be excluded.


These are just the three most common reasons I have seen claims be declined. But what can you do to prepare your self for a claim that could be declined? Use an agent that you trust when purchasing a policy so they can advise you what your policy coverage are. Also do not purchase insurance policies online, without your agent.


I would love to set down with you and your family to go over your insurance needs. Just click on this link http://bit.ly/2ZAiha0 to book a time to talk to me or my wife.





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