Reasons Why Your Home Insurance Claim is Denied

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Reasons Why Your Home Insurance Claim is Denied featured image

A home insurance plan’s primary purpose is to save the insured from any financial stress in the event of damage or property loss. However, a settlement claim that is either below expectations or denied can cause stress and frustration.

Dealing with property damage is already a difficult situation to be in as it can get overwhelming, more so when a home insurance claim gets rejected.

Should the unexpected happens, the insured must be able to rely on the insurance provider for support. It is essential to know why a claim might get rejected as preparation for the future if yours gets denied.

Before filing a claim with your home insurance Philippines, read the following reasons below why a claim may be rejected.

The damage was not covered by the policy

Like any other insurance policies, it’s vital to understand everything about the insurance policy, especially the inclusions and exclusions. While home insurance is an excellent tool for protection against a crisis, it does not cover every type of damage. Every policy has several exclusions, which are the things or factors not covered within the insurance contract.

The insurance provider may not pay out knowing the damage the insured suffered is outside the scope of coverage and, therefore, has the right to deny policy benefits. Aside from the standard covered perils, the insured can choose to pay an extra premium for additional coverage.

Late Filing

It is essential to immediately inform the insurance provider after an accident caused your property damage. Otherwise, the insurance company might deny your claim as various insurers impose different filing and documentation deadlines for claims submission. It is best to check with your insurance provider for the time limit they have for filing a claim.

Insufficient Documentation

For a claim to be accepted, it is the insured’s responsibility to provide evidence and adequate proof to support the claim. Hence, it is essential to document the damage done in a detailed manner. Some insurers investigate policy claims themselves: however, it is still best to conduct your own for full disclosure. It might involve taking pictures in the aftermath of the accident or talking to a lawyer to help you establish documentation quickly.

False Claims

After the accident occurs, the insurance company typically sends an investigator to the scene. The investigator will then collect evidence, statements, an examination of the property, and ask people who might have witnessed the scene. If the investigator finds anything suspicious or questionable relating to the claim, the insurer may issue a denial.

Failing to take preventative measures following a loss

Following damage or loss of the property, the policyholder is responsible for taking reasonable steps in preventing further damage and mitigating loss. Insurance providers expect their customers to mitigate damages and prevent the property exposed to additional loss. Insurers might deny a claim if it appears that the insured is neglectful and did not do enough to keep the mitigate the damage.

Lapsed Coverage

Those covered with car insurance in the Philippines will likely be aware that a lapsed coverage can hurt insured chances of filing a claim, and it goes the same for homeowners insurance. Your coverage may lapse if you fail to pay premiums on time. Even if you try to purchase insurance from another provider, you will likely encounter problems.

History of Claims

Filing too many claims is a red flag for insurance companies. Insurance companies make money and stay on business because of policyholders who have yet to file a claim or file very few. Therefore, if an insurance customer has a history of too many claims, it will not look attractive to an insurance company as it will likely be an expense.


No one would want to work through claims denied and wait for an indefinite time for a payout. Knowing why a claim might get rejected can help minimize the risk of claim denial from happening.

If you are looking for a homeowner’s insurance policy, visit and get a free quote. You can also compare different insurance providers and help you decide what insurance will fit your needs best.



Author: erwin reyes

Erwin has a combined experience of more than 15 years in the car insurance industry in the Philippines and Australia. Loves cars and enjoys to sourcing out great deals for its clients