The worst insurance claims mistakes you need to know

Author : GetA Quote | Published On : 26 Nov 2021

Since getting cheap home insurance is difficult, you shouldn’t make mistakes once you get it and end up spending even more money. If you suffer a loss or file a claim, there are some things you can do to make the process run smoothly. You should avoid the following mistakes.

 

Failing to read your insurance policy

Insurance policies can be hard to read but that does not mean you to avoid reading them. You should at least understand what the insurance policy means. Some policyholders assume that flood insurance is the same as water backup coverage. Water backup coverage is specific to limit coverage to damages caused due to the backup of the sump pump or sewer drain. Misunderstanding your insurance policy can cause disappointment and almost always result in poor experiences during the insurance claims process.

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Not having the right insurance coverage

This is one of the worst mistakes people can make before a loss occurs. If you do not have the right coverage, you could find yourself in a financial hole. You should have a thoughtful conversation with your insurance agent to avoid these errors.

If your insurance policy has only actual monetary value coverage for your property, and you are expecting to be compensated replacement cost, you will be very disappointed. Some people assume that damage from floodwater and hurricane wind is covered by their insurance policies. However, that assumption could be a great mistake. Homeowners insurance companies in regions that are prone to hurricanes might exclude flood damage and wind damage from the standard insurance policy.

You will therefore be forced to have a good hurricane insurance plan separately to ensure you have the right coverage. The exclusions of a policy can come back to haunt you, especially if you live in a place that is affected by natural disasters.

 

Not having a property inventory

This is a mistake that can start before you have any damage. Property or home inventory is a complete list of your possessions and you will need it if you have extensive damage. You are likely to forget what you had if you are to work from your memory. You will remember the furniture in your living room but you will not remember everything stored in your kitchen drawers. With a home inventory, you will make your claim faster and easier.

 

Failing to maintain your home

Your home insurance only covers unexpected damage and not issues that could have been solved. If you neglect to maintain your home, it can cause problems that will not be covered by your insurance company. For example, damages from a water pipe that bursts are covered but roof leakages that you fail to fix will be denied because you did not take the right action to stop the damage.

 

Poor communication

Most cheap home insurance claim mistakes are the result of bad communication. When filing a claim, you can be unclear when it comes to describing the damage to your property. Poor communication results in delays. You should therefore be clear about the damage and report the claim accurately.