After an accident, many of us call our insurance companies to place a claim. The whole idea is that they will pay out some money to you so that you can repair or replace any damaged items that were ruined in the accident. Whether you have had a car crash or had an accident in your home, this is the theory behind all insurance. However, in some cases, the insurer may refuse to pay out. Here are some reasons why that might happen to you.
You Were Underinsured
Sometimes, you might have to value an item that you want to have insured. This is often the case for expensive electronics such as laptops and mobile phones. However, if you undervalue the item, your insurance won’t be able to cover all your losses. If this happens, it is called underinsurance. Your insurance company will pay out some money to you, but it might not be enough. If you are taking out an insurance policy for an expensive item but aren’t too sure about what it’s worth, ask an expert’s opinion.
You Withheld Information
Your claim might be completely refused if you don’t give the insurer all the necessary information at the time of taking out a policy. Even if you withhold the information because of carelessness rather than intentionally. You could still end up not being able to claim. Next time you need to take out insurance for something, be sure to fill out the form in full. It might help to go over the form with an insurance advisor to make sure you give all the correct information.
There Is An Exclusion Clause
In many insurance policies, there are exclusion clauses that detail what can and can’t be claimed for. One example is if you were in a car crash that was your fault. In that case, we suggest you discuss your car accident with a professional personal injury attorney. You might find it easier getting a payout that way rather than going through your insurer.
You’ve Missed Installments
If you haven’t been paying your monthly instalments, your insurance policy could become invalid. This could happen even if you just miss one payment. So to ensure that you are always fully covered, you need to keep up with all instalments. If you ever run into money problems, check with the insurance firm to see if there is any way they can relax the payment terms.
Your Policy Is Not In Force
When you take out the insurance policy, you will have to specify a length of time in which it will be valid. If an accident occurs after this period, it will not be covered by the insurance. Don’t forget that you can’t claim for something that happened before the cover’s start date either. One way to get round this is to take out a rolling policy. This will be valid until you say that you no longer need it. Just remember to give the necessary notice period when you want to cancel it.