Insurance on a home is typically mandatory with the mortgage. Therefore, if you plan to rent out a property your insurance will cover all structural damage to the property, however, your tenant will be in charge of getting their own renters insurance to cover any damage that can potentially be done to their property. When needing coverage on any damaged goods, it is rare for an insurance company to deny claims, however, insurance companies are also not typically easy to deal with. They are known to try to weasel their way out of having to give payouts as it does not make their business any money. Therefore, it is important to learn how insurance companies attempt to deny you and how to prevent such events from happening to you. Knowing your rights, reading through policies, potentially having an attorney or other professional review your policy are all just some of the potential options when trying to decipher what your insurance policy covers.
What Are the Reasons That Renters Insurance May Be Denied?
There are many reasons that renters insurance may be denied and so it is up to the renter to be aware of their rights. One reason that insurance may be denied is that you have no home inventory. This means that for whatever you own you must have a receipt, otherwise, you can't claim a payout for it. Furthermore, receipts don't just mean physical store receipts. Appraisals and digital receipts can also qualify. Another reason may be that the person trying to claim the insurance is not listed under the policy. Each member must be covered under the insurance policy to claim it. Other reasons people get denied is because they have not updated their insurance policy, for example, if they moved and never changed their address, they wait too long to claim their insurance, or they don't know their policy well and don't realize that some disasters are not covered under their insurance policy. An example is a flood.
Are There Any Other Reasons That Your Insurance May Be Denied
There are some other reasons that renter's insurance may be denied, however, they are rarer. One reason would be outright fraud. This means that you are claiming insurance on a property that you have never even owned or you intentionally destroyed it yourself. This can lead to more problems than just an insurance policy. Another reason may just merely be that your insurance doesn't cover certain things. Therefore, you cannot just claim an item that is not covered. Furthermore, some insurance claims are denied merely because of mistakes. For example, Did you fail to mention a dog? Is the apartment your second home but listed as your primary home? Those are examples of minor and accidental misrepresentation that can cause a claim to be denied.
What Situations Should You Be Aware Of?
Sometimes there are minor situations that don't feel like they will affect your insurance, however, small mistakes can have large consequences. Sometimes, the mail is lost and now you haven't even noticed however you have missed out on the bill. Renter's insurance isn't all that expensive so you don't even notice. Without paying the bill now in any event of a disaster you cannot claim the insurance on items without paying the company. Therefore, it is important to keep track of your bills. Another example would be to always make sure that everyone in your household is covered in the insurance. Say if you have a new boyfriend that you just moved in with and you haven't updated your policy. Without updating your policy your new boyfriend is not under it and therefore can not make claims under the insurance. This is the same as when you move to a new location. Unless you call and update your insurance with your new information they cannot cover you.