Nothing stings worse than filing an insurance claim only to receive a denial letter. Many homeowners are shocked to learn their policy doesn’t cover what they assumed it would. The truth? Most denials happen for predictable reasons that you can avoid with proper knowledge.
In this eye-opening guide, we’ll reveal the top 10 claim killers and give you actionable tips to ensure your next claim sails through approval.
1. Policy Exclusions You Didn’t Know About
Every policy has fine print listing what’s NOT covered. Common exclusions include:
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Flood damage (requires separate policy)
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Earthquake damage
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Mold from unresolved leaks
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Wear and tear/maintenance issues
Smart Move: Review your policy’s “exclusions” section annually with your agent.
2. Filing Too Late
Most policies require claims to be filed within:
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48-72 hours for theft
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30-60 days for most other incidents
Real Case: A homeowner waited 3 months to report storm damage and got denied for late filing.
3. Insufficient Documentation
Insurance companies need proof. Always provide:
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Photos/video of damage (time-stamped)
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Police reports for theft/vandalism
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Receipts for valuable items
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Repair estimates from contractors
Pro Tip: Create a home inventory video walkthrough before disaster strikes.
4. Underinsurance (Dwelling Coverage Gaps)
If you’re insured for $200,000 but repairs cost $300,000:
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Your claim gets partially denied
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You pay the difference out of pocket
Solution: Regularly update your coverage to match rebuilding costs in your area.
5. Misrepresentation on Your Application
Even innocent mistakes can void coverage:
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Incorrect square footage
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Undisclosed home businesses
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Failure to mention previous claims
Warning: Insurers investigate claims thoroughly – honesty is crucial.
6. Neglect or Lack of Maintenance
Insurance covers sudden damage, not neglect:
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Denied roof claims from unrepaired leaks
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Denied pipe burst claims from known corrosion
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Denied mold claims from ignored moisture
Prevention: Keep records of all home maintenance and repairs.
7. “Acts of God” vs. “Preventable Damage”
Insurers distinguish between:
✔ Covered: Tree falls on roof during storm
✖ Denied: Tree falls from rot you ignored
Key Difference: Preventable vs. unpreventable damage.
8. Running a Home Business Without Proper Coverage
Standard policies often exclude:
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Business equipment losses
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Client injuries on your property
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Data breaches
Fix: Ask about a Business Owners Policy (BOP) endorsement.
9. Dangerous or Illegal Property Features
Claims may be denied if you have:
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Trampolines without safety nets
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Aggressive dog breeds (in some states)
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Unpermitted construction
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Diving boards without fences
Solution: Disclose all property features when purchasing insurance.
10. Cancelled or Lapsed Policy
Even one missed payment can:
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Void current claims
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Make getting new coverage difficult
Protect Yourself: Set up automatic payments with payment reminders.
Bonus: What to Do If Your Claim Is Denied
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Request a written explanation
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Review your policy wording
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Gather additional evidence
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File an appeal
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Consult a public adjuster if needed
Final Thoughts: Be Proactive, Not Reactive
Understanding these denial triggers puts you in control. The best defense?
✔ Know your policy inside out
✔ Document everything before disasters strike
✔ Report claims immediately
✔ Maintain your property diligently
Remember: Insurance is a contract – meeting your obligations ensures they’ll meet theirs.