Afghanistan recently experienced an earthquake with a magnitude of 6.6, which caused damage to buildings, landslides, and the exodus of residents into the streets. Strong earthquake tremors were felt as far away as India, including Jammu and Kashmir, Punjab, and the National Capital Region.
Given the rising number of residential properties in urban and rural areas, it is impossible to overstate the significance of home insurance. It shields homeowners from potential monetary losses due to damage brought on by theft, natural disasters, or other unforeseen circumstances.
The choice of a home insurance policy is an important one. Before making a decision, it is essential to assess the risks involved with the property, including its location, value, and potential hazards. After all, having a home insurance policy but having your claim denied if something unfortunate occurs could be a terrifying experience. Knowing the leading causes of a denied home insurance claim is crucial for preventing this situation.
Why Opt For Home Insurance As A Reliable Defense Against Natural Calamities Like Earthquakes?
- Clauses Of Exclusion
This is one of the primary grounds for denying a claim. Most home insurance policies contain specific exclusion clauses that list the losses or damages the policy does not cover. In high-risk areas, policyholders must ensure that natural disasters are covered by their policy. It would help if you looked into whether purchasing an add-on feature is necessary to get this cover.*
- Reporting The Claim Too Slowly
Policyholders are required to report losses or damages as soon as possible. Delaying the claim could lead to the insurer rejecting it because they might doubt its validity. The insurer must quickly investigate the incident to evaluate the damages and determine whether the claim is valid. The delay may have made it too late to conduct a thorough investigation.
For instance, if water leakage caused the damages, the insurer may need to look into the leak’s origin quickly. It may be challenging to evaluate the claim if evidence is lost due to delay. Additionally, many insurance policies have deadlines for filing claims that must be met.*
- Giving False Information Or Failing To Disclose Information
It is crucial to give the insurer accurate and comprehensive information when purchasing an insurance policy. Claim rejection may result from failure to provide pertinent information or from giving false information. This is because the information the insurer provides is used to evaluate the risk and determine the home insurance premium. The insurer may provide home insurance coverage for risks they were unaware of or impose an excessive premium, given the chance if the information needs to be more accurate or complete.*
- Insufficient Evidence
Homeowners must offer sufficient proof to back up their claims in case of a claim. If this is not done, the claim might be denied. For instance, it is crucial to include supporting documentation when submitting a claim. When a homeowner claims storm-related damage, they must consist of pictures of the damage and proof of the repairs made.*
You can always utilise a home insurance calculator to understand the appropriate level of coverage for your needs and those of your family.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
