What to do when your home insurer disputes your claim?

If you need to claim against your home insurance, it can be upsetting if your insurer disputes your claim. After all, the only reason you pay for home insurance is so that any damage to your property does not leave you out of pocket.

Disputes with an insurer are, unfortunately, probably more common than you know.

Why do insurers reject claims?

Insurance companies operate for profit. They have a duty to the shareholders to ensure they do not pay out on ineligible claims. However, they can sometimes go too far and turn down valid claims.

Here are some of the reasons they might use to reject your request:

• Filing errors: Insurance documents can be challenging to understand. Errors when completing your form could lead the company to reject it. However, they should allow you to submit the form again with the necessary corrections. Be sure to check the number of days you have to file your claim.
• A lack of evidence: Sometimes, an insurer will reject a claim saying there is a lack of proof. If you have further evidence, such as photos, send it to them to support your claim. You may need to hire specialists to back you up.
• Policy exclusions: No insurance policy covers every eventuality. However, the insurer needs to make explicit in the insurance document what it does not cover. A court would typically rule in favor of the homeowner if the terms were unclear or ambiguous.

Insurance companies also have a duty to act in good faith to their policyholders. Sometimes they use tactics such as delaying or rejecting claims hoping you will not proceed with your claim. You could seek compensation for the distress this causes. Remember that you always have the right to contest the decision of an insurer.