7 Reasons Homeowners Insurance Claims Are Denied

This may come as surprising news to homeowners, especially home buyers looking for a mortgage. The biggest reason insurance companies reject applicants is because they are “high risk.” That means you are more likely to be sued. Here are some common reasons homeowners insurance claims are denied:

1) Roof Condition – If your roof “looks” like it’s old, damaged, leaking, or in danger of falling in, your insurance company won’t insure your property. However, some companies require an internal audit of water damage from a roof replacement or roof purchase before approving a claim.

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2) Framing Issues – Framing a building close to another structure (about 10 meters or more) can cause fire to spread quickly, especially in densely populated urban areas.

3) Adjacent Private Development Issues – Insurers consider vacant land and adjacent properties to be at higher foreclosure risk than vacant or blighted properties.

4) Stucco or EIFS Framing – Inspectors often find that these materials can cause exterior water damage if not properly installed or maintained. It can be difficult to write a policy for your business if you use these materials outdoors. However, if you’re a business, you won’t pay higher premiums, deductibles, or both. Always use good quality plaster material, for this, you can search eifs suppliers near me online.

5) Knobs and Duct Cords – Most insurance companies stay away from pre-1940 (K&T) homes with knobs and duct cords. If you have K&T in your home, the company may have an electrician inspect the K&T wiring or replace it with new material.

6) Major Updates – If there are major updates to your plumbing, roofing, basement, electrical, waterproofing, heating, ventilation, or air conditioning systems, you will need a certificate of repair and a certificate of updates from your company. of insurance. made. Approved contractor mark.

7) Pre-1900 Building – If your home was built before 1900, your insurance company may have covered all major systems, including roofing, electrical, plumbing, and other upgrades. Without these updates, it can be difficult to get insurance. If you’re experiencing any of these issues in your home, make sure you’ve completed all necessary repairs and upgrades before purchasing home insurance.

When you’re ready, get a homeowners insurance quote to find out how much coverage you can afford.

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