8 simple property insurance mistakes you don’t want to make
2. The property is located near a river
Homes near water sources are more likely to flood, which insurers must consider. Insurers want to know if a home has been flooded or is about to be flooded. If it is inundated and a claim is made, the insurer may deny it if you didn’t make them aware of it at the time of buying the policy.
3. Your residence has been vacant for more than 30 days
If you have already purchased home insurance, you may be aware of this issue and believe that it is not your insurer’s responsibility. They do so, however, because leaving a home vacant increases the risk of insurance claims significantly.
The increased risk of theft is an obvious example. However, it increases the likelihood that fires and water damage will become out of control, causing serious and costly damage. Again, if you file a claim while the property is vacant and do not notify your insurer, they are not required to accept it.
4. Inadequate disclosure of the extent of the damage
Insurance adjusters will need as much information as possible in order to pay your claim. Although your insurance company may send an adjuster to assess the damage, it may be your responsibility to provide the reasonable items requested by your insurance company. Your claim may be denied if you do not provide the requested items.
5. Are there any trees or shrubs nearby?
Sagging is another issue that may appear strange but is of concern to insurers. Sagging occurs when properties sink slightly, causing structural damage.
Thirsty trees and shrubs are one of the primary causes of this phenomenon, which causes soil water to evaporate. As a result, insurers frequently enquire whether trees or large shrubs have been planted near the house.
6. Is the property constructed of unusual materials?
Some houses, particularly older ones, may have distinctive design features such as a thatched roof, mud walls, a felt roof, and so on. These can raise the risk of a fire and are also costly to maintain or repair. As a result, insurers should be notified if your home is not constructed using standard peatland materials, or claims may be denied.
7. Purchasing insurance policies online
The vast majority of home insurance policies are now purchased through price comparison websites rather than from insurers or brokers directly. These websites employ software that pre-populates answers to specific questions to speed up the process of obtaining insurance, which many people regard as a chore.
However, this software can be inaccurate, and if you don’t catch it, you could end up with a denied insurance claim.
8. Waiting too long to make a claim
You may only have a limited time to file your complaint. If you wait too long to report the damage, your claim may be denied. Natural disasters, on the other hand, can cause delays or impair your ability to file a claim on time.
There is frequently no discernible harm to the insurance company, and substantial compliance may be sufficient even if you exceed the time limit specified in the policy. In general, insurance disputes are contractual disputes with a five-year limitation period for bringing legal action from the date of the loss. In some cases, you may have damage but have no reason to discover it until much later, which does not always imply that it is uninsured.
