Is Your Insurer Avoiding Your Claims? Here’s What You Need to Know


Not all insurance claims get accepted, but it doesn’t mean that insurers are finding excuses to not pay their policyholder’s claims. You can avoid disappointment by understanding your coverage specifics.

Your insurer can only compensate you for a covered loss

When you’re insured, your insurance company is obligated to honor claims for losses included in your policy only. For instance, denied flood damage claims may cause some homeowners insurance policyholders to think that insurance companies avoid paying claims on purpose. Nothing could be further from the truth. It may be that some policyholders are unaware of the fact that standard homeowners insurance never covers flood damage. This coverage is only available through a separate flood policy or endorsement.

The lower your monthly premiums, the less the coverage

To accommodate the specific needs and budgets of their clients, insurance companies may offer different coverage options for the same policy type. For example, not every auto insurance policyholder chooses coverage for things like collision, theft, or natural disasters. Many drivers (and other insurance policyholders) purchase personalized protections that leave out coverage options they don’t want to pay for. Although opting out of coverage allows you to pay lower insurance premiums, it also means that you won’t be compensated if you experience any uncovered loss

Understand your insurer and insurance policies

Always read the fine print of your policy documents to understand exactly what your insurance covers. Taking the time to understand your policy will ensure you have a good grasp of your coverage limits in the event you need to file a claim.

Review your policy with your agent’s assistance

Sometimes, the language in your insurance policies can be too technical. You may want to enlist the help of your insurance agent in reviewing all the terms, conditions, and provisions of your insurance policy. Ask your agent questions about things you don’t understand, such as your coverage options, endorsements, or even exclusions, where applicable. They are there to help you.

It’s unlikely for legitimate insurance companies to deny paying valid, covered claims. To avoid any misunderstanding, be sure to read your policy’s fine print to understand what is and isn’t covered. For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today.