[This is a guest post by Shaun Bishop. Think you’ve got what it takes to be a guest poster? Contact Em at em [at] blondeandbalanced [dot] com to learn more about becoming a guest poster yourself!]

Insurance acts as a safety net. If something bad happens, your insurance provider can help to cover the loss or the costs of repairing the damage. When it comes to home insurance, this kind of coverage can be invaluable.

But what happens if your claim is denied? Here are seven reasons home insurance claims can be denied.

Exclusions

Insurance providers don’t offer payouts on events excluded from the policy. With home insurance, an exclusion could be flood damage. Many insurers don’t cover flood damage at all, while others provide it if the policyholder specifically requests it. Exclusions are set out in the policy terms and conditions, so be sure to find out what they are before you sign up.

Act of God

Events that are classed as an Act of God will often be included as an exclusion on a home insurance policy. These are usually natural occurrences and will generally not result in a payout by the insurer. Check the small print on the policy for more details on this—visit the HBF home and contents insurance website today to find out more.

Negligence

Insurance covers a number of things, but if it was your negligence that caused the loss or damage, you might not be able to make a claim. In the case of home and contents insurance, you may be able to make a claim if someone stole all your furniture, but if you left the door open, your claim may be denied.

Lying on Your Application

If you provide false information on your home insurance application—or even if you hold back certain bits of information—your policy can be rescinded. This means your claim will be denied, the policy will be void, and all paid premiums will be returned to you.

Unpaid Premiums

If you were late paying your premiums, or you missed paying your premium altogether, the claim will usually be denied.

Commercial Use of Private Property

If you operate a business from your home, you will normally need commercial insurance. Private insurance claims made may be denied if you run a business from home or keep property belonging to your business at home.

High Risk

Insurance helps to protect against risk. However, if something becomes too risky, it may become uninsurable. For example, if you make the same type of claim multiple times within a short period of time, your claim may be denied as it has become high risk.

What to Do If Your Claim is Denied

It’s estimated that around 10% of denied claims are wrongly denied, so if your claim is denied, you don’t have to take that as the last word. Find out the reasons your claim was denied, check the terms and conditions on the policy, and make an appeal if necessary.

Photo credit:  Enokson

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