The Hoarder’s Den: 4 Times When Your Homeowners Insurance Agent Can Deny Your Claim

There are multiple things that must be considered prior to buying a home. Whether in regards to their budgets, mortgage packages, or other requirements necessary to finalize the transaction, buyers have a lot on their plate. One crucial component of completing the home-buying process is getting approved for homeowners insurance.

Unfortunately, however, some prospective buyers may find themselves in a difficult position, as their lifestyle or financial history could get in the way of their approval. There are numerous factors that go into consideration when insurers are reviewing your application, including home insurance history, the types of pets in your household, or the home not being up to local codes and ordinances. Depending on your perceived risk level, insurance agents then have the ability to deny your claim if they believe the liability to be too high. In order to increase your chances of being approved, you must understand the different reasons why insurance companies may deny your claim, and adjust accordingly to meet their requirements.

Here are a few common reasons homebuyers are denied coverage:

Excessive Material Wear and Tear

When it comes to insuring your home, the extent of wear and tear on the home itself can strongly influence the decision of insurance agents. Having a roof that is past expiration, and is now falling apart and deteriorating, can cause insurance claims to be denied as a result of poor maintenance. If the time for repairing major components of the house has passed, this generally means the time and cost of replacing has also increased, thus increasing the liability seen by insurers. Making sure to fix any necessary wear-and-tear damages immediately will increase the chances of getting your insurance claims approved.

Prior Claims Made

Your running track record with home insurance companies is a big determinant of whether your claim will be approved. Insurance agents view homeowners with excessive claims made to be an increasing liability, and having too many can jeopardize your chances of being approved.

Some insurance companies will refuse coverage of an individual who has had a claim within the last three years, which will result in a lengthy waiting period before you’re eligible for coverage again.

Types of Pets in Household

Depending on the type of pet you own, insurance agents may have the right to deny you homeowners insurance. Most often this is an issue with dog owners, given the fact that certain dog breeds have a history of being overly aggressive and causing liability for insurance companies.

Specifically so, the amount of home insurance claim dollars paid out due to dog bites was one-third of the total claims made in 2015, totaling more than $570 million. This provides insight as to why some home insurance companies are hesitant to approve dog owners.

County Codes are Compromised

Most people want to improve and remodel their home to fully customize it to their desires. However, depending on the types of adjustments made, this could run the risk of falling under the standards of county codes, which will lead insurers to deny your claim.

Depending on the upgrades you want to make, it is crucial to research the codes that are required in your location, so as to keep your homeowners insurance intact. Each city may have different regulations that need to be upheld, and forgoing them can cause major headaches when it comes time to renew your insurance.

The process of comparing homeowners insurance quote is usually fairly straightforward, and often happens smoothly. However, certain things can compromise your claims for home insurance, and therefore it is vital to understand the things that affect your standing with insurers. By keeping a close eye on the requirements and general guidelines, homebuyers and homeowners can increase their chance of approval, and significantly reduce the risk of denial.