Top 5 Reasons Insurance Claims Get Denied (And How to Avoid Them)
- tgagni1
- Mar 23
- 2 min read
Filing an insurance claim after experiencing property damage should provide peace of mind, but many policyholders are shocked when their claims are denied. While insurance companies are quick to collect premiums, they’re not always eager to pay out claims. Understanding why claims get denied can help you avoid common pitfalls and ensure a smoother claims process.
At Castaway Claims, we specialize in helping homeowners and business owners fight unfair denials. Here are the top five reasons insurance claims are denied—and what you can do to prevent it from happening to you.
1. Lack of Proper Documentation
Why it happens: Insurance companies require detailed proof of damage, including photos, receipts, repair estimates, and a written account of what happened. If this documentation is missing or incomplete, they may deny the claim.
How to avoid it:
Take clear, time-stamped photos of damages immediately after the incident.
Keep all receipts for repairs, temporary housing, or damaged belongings.
Maintain a home inventory with pictures and values of your possessions.
2. Late or Delayed Claim Filing
Why it happens: Most insurance policies have strict deadlines for reporting claims. Waiting too long to file can lead to automatic denial.
How to avoid it:
File your claim as soon as possible after damage occurs.
Contact a public adjuster if you’re unsure about the timeline.
Keep a record of all communications with your insurance company, including emails and phone calls.
3. Damage Not Covered by Policy
Why it happens: Some policyholders assume all damages are covered, only to find out that floods, earthquakes, mold, and wear-and-tear may not be included in their standard policy.
How to avoid it:
Review your policy regularly and ask about exclusions.
Consider adding endorsements or riders for additional protection (e.g., flood insurance).
If your claim is denied for lack of coverage, consult a public adjuster to verify the insurance company’s decision.
4. Pre-Existing or Gradual Damage
Why it happens: If an insurance company determines that damage existed before the claim or was caused by neglect, they may refuse to pay.
How to avoid it:
Perform regular maintenance on your home, including roof inspections, plumbing checks, and mold prevention.
Keep records of repairs and maintenance to prove the damage wasn’t pre-existing.
If your claim is denied for this reason, request a re-evaluation by a public adjuster.
5. Errors or Misrepresentations in Your Claim
Why it happens: Any inaccuracies—intentional or not—can result in claim denial. Even small mistakes in paperwork or failure to disclose past claims can lead to rejection.
How to avoid it:
Be honest and accurate when submitting your claim.
Double-check all forms and documents before sending them.
Work with a public adjuster to ensure your claim is properly prepared and supported with the right evidence.
Final Thoughts: Don’t Fight Insurance Companies Alone
If your insurance company has denied your claim—or if you’re worried about making mistakes in the filing process—you don’t have to handle it alone. At Castaway Claims, we fight for policyholders to ensure they receive the compensation they deserve.
If your claim has been delayed, underpaid, or denied, contact us today for a free consultation—and don’t let your insurance company cast you away!
Comments