Every person who has taken up insurance policy dreads the moment they are informed that they do not have insurance. That being said, there are several explanations as to why an insurance claim can be rejected.
Incorrect information or not giving out all information. The policy you sign up for depends on how you answer some questions that the insurer will ask regarding your life and your property. If you answer a question incorrectly or when you do not complete the answer, chances are your cover will be invalidated, reduce the amount you would be paid when you submit a claim or have your claim rejected all together.
Lack of proper maintenance on the property. When the assessment is done and it reveals that the loss or damage on the property was because of neglect, there are high chances that your insurer will not settle your claim.
Not specifying the contents. There are some policies that demand that you valuables of a certain amount be specifies, mostly to a maximum of £2,000 per piece. If you have not met this demand, your insurance company could decline to settle your claim.
Partial pay out. In the event that you have erroneously under estimated the net value of your insurance cover in your claim, then the insurance company will not settle your claim in full.
What steps should one take when the insurance company rejects your claim?
The insurance company should give a comprehensive explanation as to why your claim has been denied. It is advisable to go through your policy documents prior to making a claim even though you should still go through the documents if you are not in agreement with the decision of your insurer.
Ensure that you have provided accurate information and be keen on any policy phrasing that is somehow vague or a statement which reads that you should be covered. You can also seek an opinion of an independent party, who is bound to be more objective when going through the document. This is especially necessary if the claim is for accidental damage and you are not in agreement with the loss adjuster from your insurer.
In the event that the insurance company has refused to pay your claim and you are not convicted that the way they have treated your case is fair or called for, then it is only right to take necessary steps to address the issue.
The first step is to contact the complaints department of your insurance company. They should be in a position to listen to your case, handle the matter at their level and if it is beyond them, then they should escalate it to the relevant senior person within the department.
If this fails and you are not contented with the outcome of contacting the complaints department, then you should contact the Financial Ombudsman where both parties share their case and a decision is made objectively and fairly.