It’s every policyholders’ nightmare to be told that they are not covered. Even so, there are multiple reasons why a claim could be refused:
1. Inaccurate or withheld information – Your policy is based on your answers to questions the insurer asks about you and your property. An incorrect or incomplete answer could invalidate your cover, reduce the amount paid if you need to claim, or stop your claim being paid.
2. Property not maintained –if it is found that damage or a loss was due to the building being neglected then your insurer can refuse to pay your claim.
3. Contents not specified – some policies insist that you specify valuables over a certain amount, usually up to £2,000, individually. If you have not done so, your insurer can refuse to pay your claim. HomeProtect’s specified item limit is £1,500.
4. Partial pay out – your insurer might refuse to pay the full amount of your claim if you have under-estimated the total value of your cover.
What to do when insurance denies your claim
Your insurance provider must give a fair reason for rejecting your claim. It is recommended that you check your policy documents before making a claim, but you should also check them if you disagree with your insurer’s decision.
Check that the details you have shared are accurate and note any policy wording that is either ambiguous or which states that you should be covered. If relevant, get an independent opinion. You might find it necessary to do this if you are claiming for accidental damage for instance and do not agree with the insurer’s loss adjuster.
If your claim has been refused and you don’t believe you have been treated fairly then you can take steps to address the issue. You should first contact the complaints department, and lastly get in touch with the Financial Ombudsman if a fair and reasonable outcome cannot be agreed.