11 Reasons Your Home Insurance Claim May Initially Be Denied

Getting adequate insurance is one of the first money moves homeowners must make when they acquire an estate. And when you pay for insurance, you expect that it will be there when you need it. But it doesn't always work out that way.

There are multiple reasons an insurance company might deny your claim. While the process is not always within your control, you can go into it more informed and take steps to set yourself up for a smooth insurance claim process.

Here are the 11 reasons your home insurance claim might initially be denied and what you need to know ahead of time.

Incomplete information is not the end of the road, but it could lead to a claim denial. So, make sure you provide documentation, photos, or anything else that could help make your case clear.

There are often strict timelines for filing a claim. If you wait too long, you could be denied simply because the claim window has closed.

Not every incident is covered by every insurance policy. Your policy may cover damage from fire or hurricanes, but it's unlikely to cover damage from earthquakes or floods, for example.

Read your policy carefully to make sure you are fully covered for any event that you could anticipate hitting your home.

If a storm breaks your kitchen window, cover the opening as soon as it's safe to do so. Rain could cause more damage while you wait for a permanent repair, and your insurer may not cover damage you could have prevented.

Your coverage level may be inadequate to cover the claim.

For example, if you have $100,000 worth of coverage and your repair bills come to $200,000, you will be on the hook for the difference.

Insurance exists to help you out in the case of an accident, natural disaster, or other event beyond your control.

But even in the absence of a disaster, houses don't stay perfectly new forever. If normal wear and tear caused your oven to stop working or your siding to fall off, insurance won't cover the fix.

Making updates to your property can lower your insurance rate because it makes your property less likely to suffer damage.

On the other hand, not making updates can result in damage that occurs simply as a result of negligence.

A neglected property may not be eligible for coverage. Similarly, if you are negligent about dangers — such as leaving an aggressive dog to roam — your insurance may not help you out if, for instance, that dog attacks someone.

Insurance fraud isn't going to get you very far.

If the insurance company thinks you are lying about how the damage occurred or exaggerating the extent of the damage, your claim will likely be denied and you will face potential repercussions.

It's easy to let your insurance policy lapse. There are times when you might miss a notice or forget to pay the premium.

If that happens and it coincides with a period when you need to make a claim, you are going to be out of luck.

After a storm or other stressful event, you might accidentally submit the same claim twice. Your insurer may initially deny the second submission as a duplicate, even though the original claim is still being reviewed. 

Call your insurer to confirm the status of the first claim and find out whether it needs any additional information.

An administrative error could cause your insurer to initially deny a claim, even when the damage may be covered. If the denial letter appears to describe the wrong type of damage or cites a policy provision that doesn't fit, call your insurer and ask for an explanation. 

If there's an error in the claim record, ask the insurer to correct it and review the claim again.

Knowing that your insurance is active and that it fully covers any scenario is one of the easiest ways to eliminate some money stress.

Also, do what you can to lower your insurance premium and pay less each month. This might mean making specific updates or renovations to your home or investing in specific security measures.