Tuesday, 02 September 2014
Why Your Insurance Claim Might Be Refused
Why has my insurance claim been refused?
There are any number of reasons why you might have your insurance claim refused. Home insurance is an important part of home ownership and basic buildings insurance is often required in order for you to secure your mortgage. Contents cover is just as essential, and when you are applying for insurance you need to make certain that your estimates are as accurate as possible. Under or over estimation of contents value or rebuilding costs can negatively impact against your cover, so being accurate is the best way to make sure you get the policy you need at the right price. When you are refused home insurance claims, not only can you be left financially disadvantaged in the short term but for years to come as well.
Have you got the right cover?
Making sure you have the right cover for your needs is the best way to avoid being refused house insurance. A policy that is as inclusive as possible might cost more than basic cover, but it can be worth it in the long run. Trying to save money by underestimating the true value of your home or possessions is likely to prove a false economy, as you will not be covered when it really matters. Also; an underestimation will not just mean that the claim pay-out will fall short of your actual loss, but could give your insurer grounds to refuse or avoid your entire claim.
Overestimating values is an equally bad move, as not only will you have to pay more for your premiums but your application may appear fraudulent as well. Insurance fraud is a criminal offence, so the repercussions can be severe and you are likely to have a lot more than being refused house insurance to worry about. If you are living in a non-standard home, then you need to be aware that rebuild costs could be higher than with a standard property, so you should seek specialist advice where appropriate.
Refused buildings insurance claims
It isn't always the insured party's fault when they are refused buildings insurance claims, as sometimes insurers get it wrong to. If you feel that your claim has been rejected unfairly then you need to complain to your insurer. You are required to give the insurer a reasonable amount of time to respond to your complaint, but if you are not satisfied with the outcome then you can take your case to the Financial Ombudsman Service. The FOS are an independent body set up to handle financial complaints through a fair and impartial system.
Understanding the details of cover
When you take out any kind of insurance, you need to be confident about what it does and does not cover from the start. It is no use questioning the wording of your documents after the fact, so if there is anything in it that you do not understand you need to question it at the start (and preferably before you sign). Not understanding the details of cover can have dire consequences, particularly if you think you are covered for something that happens and only discover otherwise after it has happened. No what your cover includes and excludes and you will be less likely to be refused buildings insurance.
Once you have been refused home insurance it can be difficult to renew cover or get cover elsewhere, as you are required to disclose all insurance refusals as material facts when applying for cover. When you seek cover from a specialist insurer like HomeProtect, on the other hand, this does not need to be a problem. With HomeProtect you can get a competitive quote for cover, quickly and conveniently online, even when you have been refused home insurance in the recent past.