4 Top Causes of Rejected Insurance Claims

It is always a wise idea to insure yourself and your property, since you never know when disaster will strike. Once you sign a contract with an insurance company, you should rest easy knowing that you’re covered in case of any eventualities. When the unexpected occurs, you rush to your insurer expecting your rightful dues. Sometimes you get exactly that -- or maybe not. Many have been turned down during their hour of need. What could make the insurance company deny your offer even after faithfully paying the premiums? Here are the most common causes of rejected insurance claims:

  • The Claim is not Covered

Many people fail to study the terms of their insurance policies, leading them to think that they’re covered for specific circumstances when they are not. How comprehensive is your insurance cover? For instance, you may have insured your car. Then it gets damaged in a riot. The insurance rejects your claim reasoning that a riot is not an accident. Somewhere in the fine print, they will pull out a clause that states something to that effect. You will then have to shoulder the costs yourself. To avoid such instances, involve a lawyer before signing the agreement, so that all the details can be explained to you in layman's language.

  • You Contributed to the Accident

Negligence and careless behavior will easily lead to rejection of insurance claims. Drunk driving, dangerous stunts or ignorance of warning signs are deemed as reckless acts which are not entitled to any compensation. Keep in mind that even if you were not the one driving your car but the drunk driver had your permission, you’re still held liable for any accidents.

  • Incorrect details

How often do you update your details with the insurance company? In most cases, the details held by the insurance company are outdated. Whenever you make a change in your address, banking details, job or any other relevant detail, let the insurance company know right away.

  • False Claims

Some people tell outright lies with the aim of manipulating their way into compensation. This will not only get the insurance claims denied, but charges can also be brought against you for giving false information.

Should your claim be rejected for unclear reasons, hiring a lawyer is your best bet. Welmaker Law Firm provides highly competent lawyers who strive to ensure that your valid claim is duly compensated.