8 of the most common home insurance claims mistakes
We’ve said it once, and we’ll say it again: insurance can be confusing. If it was straightforward, no one would need the help of an insurance broker, or ever get confused about what they’re covered for when it comes time to make a claim. It’s not just you – a lot of homeowners are confused, too. Insurance policies are touch to read because they need to spell out exactly what is covered and what isn’t. They’ll include specific limits, conditions, and terms – which is why it can all get very confusing very quickly. That’s why insurance brokers seem to speak “another language” when they’re working with you on your coverage. They have years of experience understanding how policies are formed.
It only makes sense that there’s bound to be some error when it comes to understanding how to make home insurance claims. In this blog post, Panda7 will go through some of the most common home insurance claims mistakes.
Not reading your policy
Look, we’re all guilty of it. No one loves to read their insurance policy, or even review their coverage so little as just once a year. You might hesitate because insurance is complicated, and policies aren’t always the easiest to read. Fortunately, that’s what insurance brokers are for! If you’re struggling to understand what the coverages in your policy mean or haven’t reviewed your policy recently, you can always call up your friendly Panda7 insurance broker to help you do a run-through.
There’s a lot of complexities when it comes to insurance coverage, and it is commonplace for homeowners to simply assume they’re covered for something when they aren’t. If you don’t know where to begin or you get the feeling you might be confused about something, don’t hesitate to reach out to the brokers here at Panda7. Misunderstanding what you’re covered for simply by failing to read your policy or not understanding what it is that you’re reading can lead to some serious dissatisfaction during the claims process.
Not documenting your belongings
If you ever have to make a claim, the process may go all the smoother if you had a home inventory to provide. If you are forced to work by memory, chances are you won’t be able to surmise an accurate representation of all that you owned and you’ll miss out on some items, ultimately failing to include them in your claim. The big things will probably come to mind, but what about that expensive cocktail making kit that slipped your mind? Small items that you miss will have a larger cumulative value than you might expect, so going about filing a claim without a home inventory can force you to lose out – big time. Bottom line? A home inventory doesn’t take long to make and it can save you money if you ever find yourself in a situation where you have to make a claim.
Cleaning up immediately after a loss
It can be tempting to try and clean up immediately after a loss so that you and your family can get back to living as you did beforehand. This can be a huge mistake, especially as it doesn’t give a chance for your insurance company to fully document the damage that was done. Avoid throwing away any receipts or damaged items, as these can serve as proof of your loss. If you are filing a claim for a damaged part of your home or an item, keep it until you have enough photo evidence and documentation for repair/replacement estimates.
Not purchasing enough coverage
Even before a loss occurs, there’s a huge (but common!) mistake that many homeowners make: not having enough coverage. Whether your limits are too restrictive or if you assume something is covered that isn’t, you leave your property and assets exposed to potential losses. Just because something happened “accidentally,” doesn’t mean it’s covered. As an example, not all instances of water damage are covered, such as leaks from your roof over flooding entering from your basement’s windows.
This is where it comes in clutch to review your policy regularly – and have a broker in your corner when you do it. Brokers may be able to recognize potential exposures thanks to their expertise and experience in the field and can advise you on potential coverage options to lessen your risk.
Waiting too long after a loss
Not everything is healed by time. Issues rarely resolve with time, so it’s imperative that you report a claim as soon as an issue occurs to get repairs started. Some insurance companies may even have a limited period where you are allowed to file a claim – typically up to one year, but it can vary depending on where you live and your exact carrier. That being said, it doesn’t benefit anyone to wait. File your claim as soon as you can.
Making too many claims
When your rates are being calculated, your claims will be taken into account. One or two claims can slip under the radar easily enough, but if your home (or even auto) insurance provider has discovered you are making claims for every small damage that has occurred in your home, you may want to consider trying to fix the slighter issues by yourself. Sometimes, it isn’t worth making a claim if your deductible is more than it would take to repair or replace whatever was lost.
Moreover, you can reduce your chances of having to make a claim by simply being a good homeowner. Doing your due diligence and addressing issues with maintenance and small repairs before they spiral into worse problems is a good start.
Not detailing your loss accurately
We get it. Making a claim can be stressful, especially if you have just suffered a significant loss. Poor communication can happen when you aren’t thinking straight. When you have to file a claim, it’s important to break down the incident into steps and clearly detail what was lost. If you don’t accurately communicate the loss, you might find your claim delayed significantly.
In summary, the claims process can go much smoother if you keep a level head, review your policy regularly, look after your home properly, and use your broker as a resource if you are ever confused about your coverage. We’re here to help – rain or shine.
