My Insurance Company Has Rejected My Claim. What Can I Do Next?
In the unfortunate circumstance where your insurance company has cancelled or voided your insurance claim you need to understand why that has happened and what your options are.
If this has happened to you we will attempt to guide you on this process below.
Why would my insurance company void my claim?
There are several reasons why Insurance companies may void your claim. Below is a list of all the main ones but please read your policy carefully to understand the terms and conditions fully.
Inadequate cover
Inadequate cover means simply that you don’t have the correct insurance options for your claim. If for example you are claiming for accidental damage to a sofa then you have to have accidental damage as an option on your policy.
Usually this is an optional extra and isn’t included as standard on the policy. If you don’t have it you cannot claim for it on your home insurance policy.
Another example of inadequate Insurance is making sure you have the correct policy for your needs. If you own the home you are in you should have buildings and contents cover. If you only have buildings then none of your contents will be covered in case of theft or damage.
If you are a tenant in the property then you should have contents cover.
Under-insuring
Underinsuring means you don’t have enough monetary coverage for all the damage that has occurred to your property.
An example of this is if you has only insured your contents for £25,000 but the damage to contents has been estimated at £45,000. The insurance company may choose to void your policy because you have not correctly estimated the cover you need at the time the policy was taken out.
We know that as time goes on people generally tend to accumulate more personal belongings or valuables. You must make sure your insurance cover is updated to reflect that.
30 or 60 day empty property rule
Unfortunately, a lot of people get caught out by this one. Depending on the terms and conditions of your policy if the property is left unattended for a period of between 30 and 60 days the policy is automatically void.
For example, if you went away on holiday or a work secondment for 3 months and returned to find that a tap in the bathroom had overflowed and the whole house was saturated with water you would not be able to make a claim on your insurance unless you informed them beforehand that you were going.
You would be liable for the entire costs of the damage. The insurance company would not pay out. We advise you to check your policy carefully before taking any extended absence from home.
Unable to pay policy excess
Most policies carry a standard excess on building and or contents. If you are unable to pay the excess the insurance company may choose not to proceed with the claim.
If you are unsure what the excess is please read your policy carefully before making a decision whether to claim or not. In some cases the excess can be more than the value of the damage. In this case you may not wish to make a claim.
Fraud
This one is self explanatory. If the insurance company believe you are being deceitful or have misrepresented the value of the claim they reserve the right to terminate the claim and void your policy with immediate effect.
We would strongly advise against being untruthful as the insurance companies and all their supplier partners are trained to spot fraud.
If the insurance company believes that the fraud is serious enough they may choose to call the police and you may find it almost impossible to get insurance from any company again.
Criminal activity
If you were conducting any criminal activities from the property and the insurance company discover this would definitely be grounds for terminating the claim.
There are several other reasons why your insurance company may void your claim. We have given you just a few of the main ones as a guide but we recommend you read your policy carefully especially the terms and conditions sections.
My insurance company will not proceed with the claim. What can I do?
If your insurance company has decided not to proceed with the claim then it doesn’t necessarily mean it’s the end of the matter.
Depending on the level and type of damage Rainbow International West Yorkshire may be able to help you. We handle insurance claims for several of the larger insurance companies in the industry and we can offer our services directly to you.
We can attend your home and prepare a quotation for the work that is required. If you are happy then we can schedule in the works at a convenient time. The only difference is that you would settle the bill.
Even if you just need some independent advice or are unsure what to do please feel free to contact us.