Unfortunately, getting that compensation or refund from your insurance company is not as easy as it sounds. For your claim to be approved, your insurer must conduct extensive investigations to prove the legitimacy of your request. An unsuccessful claim request can leave you financially strained, especially in high compensation cases. As a result, it is important to ensure you understand your role in honoring your contract with an insurance agency.
Below are 7 reasons why you have trouble with your insurance claims
1. Fraudulent Intentions
To be successful in your insurance claims, you have to remain completely honest in all your communication. For instance, lying about the extent of damages can land you in hot soup with your insurer. Even worse, providing intentionally misleading information can lead to prosecution and hefty fines. Therefore, to avoid unnecessary complications, it is advisable to be as honest and as accurate as possible upon making your claims. Ensure you report every detail to the best of your ability as this will increase the chances of compensation. Fraudulent intentions more often than not lead to contract termination. In the event of your insured risk occurring, it is upon you to report the correct details to your insurance provider.
2. Uncovered Damages
As you might have realized by now, your insurance does not cover all sorts of damages. As a result, it is vital that you take time to understand your policy and the extent of coverage. In most cases, people fail in their claims due to the occurrence of uncovered perils. It is advisable to be extra keen on understanding the exclusions in your insurance contract; failure to do so might leave you in a precarious position, more so when it comes to receiving compensation. When purchasing your preferred policy, it is crucial to ensure you take enough time to include the possible risks that may occur.
3. Identifying and Reporting the Exact Cause of Damage
In the complicated world of insurance, no insurer can ever honor a misreported claim. No matter how consistent you might be in paying your premiums or honoring your contract, misreporting a claim can land you in your insurer`s wrong books. Therefore, always remember to indicate the correct cause of damage or injury. Seeking professional assistance from the experts can go a long way in ensuring your claim is correctly reported and communicated to your insurer. By doing everything correctly, you increase the chances of filing a successful claim which cannot be turned down by your insurer. According to Jeffrey Preszler from Preszler Law (https://www.preszlerlaw.com/), if an insurance company denies a person the benefits they are entitled to, Ontario law permits the insured to sue the insurance company. Seeking expert advice as you file your claims ensures your insurance agency honors its part of the deal.
4. Inconsistency with Premium Payments
Unfortunately, some people fail to understand the importance of consistent payments in the field of insurance. Insurance companies rarely compensate clients whose payments records are inconsistent. Missing a single payment can cause you a lot of problems, more so in case the insured risk occurs. Do not expect your insurer to honor your claim if, at the time of the risk occurring, you had outstanding payments. Ensure you plan for each payment and always pay on time. In case you miss or delay in paying your required premium, be sure to contact your insurer to determine the way forward. A simple delay in premium payments can greatly reduce your chances of successfully making your insurance claim.
5. Intentional Losses
Due to the awareness of a potential refund or a significant compensation, some policy owners orchestrate the occurrence of the insured risk. However, for insurance companies, instigating an insured risk is considered fraud and can lead to legal action. Another important point to note is that your insurer won’t honor your claim if neglect or self-inflicted damage is found to have contributed to the occurrence of the risk. Be sure to report any accidents or incidents that, in one way or another, might lead to potential issues on the side of your insurer. Avoid keeping important, policy relevant information to yourself as doing so may lead to policy cancellation or the rejection of your claims. In addition to maintaining regular contact with your insurer, be sure to seek expert advice whenever you are unsure of how to approach a situation with your policy provider.
6. Observing Contractual Obligations
Similar to other contracts, your insurance contract will have multiple clauses that reveal the boundaries and limits of the policy. However, it is upon you to ensure that all the listed requirements are observed on your side. Failure to heed to contractual obligations can lead to delayed payments or contract termination. For your insurer to honor a presented claim, you must ensure you observe protocol in reporting the claim. First, you must observe the deadline for reporting claims. Also, you must constantly notify your insurer of any changes that occur once the policy is in place. It is advisable to have a professional go through your contract to explain complex terms. Understanding the limits of your contract will guarantee your claim is honored upon the occurrence of the insured risk.
7. Insufficient Deductible
Most claims are rejected due to insufficient deductibles. Put simply, your insurance won’t honor a claim if the damage isn’t costly enough to warrant a compensation. Unfortunately, most people expect an insurer to foot all costs upon the occurrence of an insured risk. However, all agencies rely on deductible margins as a guide on whether a claim should be honored or not. As a result, it is important to ensure you are aware of the deductible once you obtain a policy from your insurance. If your deductible is too high, then you should address the situation with your insurer before entering into a contract.
Now that you are aware of the main reasons for unsuccessful claims, it is upon you to keep the above details in mind. In addition to honoring your contractual obligations through timely payments, ensure you always provide accurate details to your insurer to increase the chances of a successful claim.