Homeowners Insurance Claim Denied? Here’s Why

Having your homeowners insurance claim denied may be frustrating.

But practically speaking, what happens when homeowners insurance claims are denied isn’t always bad. 

Four distinct disadvantages of being approved:

  1. You lose your no claims discount.
  2. Your insurance premiums may go up.
  3. Your “risk rating” drops with every claim. 
  4. Deductibles are owed.

Now chances are, you won’t make many claims in your home’s lifetime. That’s a good thing, because the lower the risk, the lower your rates are.

After all, you wouldn’t want to unnecessarily alarm your home insurer.

Why buy condo home insurance? 

Why You Need Homeowner Insurance

Homeowner insurance protects your home, personal property, and vehicles from vandalism, theft, perils like weather damage, and more. See what homeowner insurance is for. 

Your insurer has you covered against trips, slips, and falls by visitors, or accidental damage you cause someone else’s property. Your policy may even pay for a lawyer if you’re sued for libel or slander. See our home insurance guide for buyers. 

Homeowner insurance is not mandatory, but mortgage lenders can require it to protect their investment. 

Buying a house in a flood zone

Finding out problems with help from professionals

Reasons Homeowners Insurance Claim Are Denied

What you get for your money depends on your claim. Here are 6 reasons that could cause a homeowners insurance claim to be denied:

  1. Document Mix-Ups

Messy paperwork upsets homeowner insurance adjusters. A typo or misplaced number can get your homeowners Insurance claim denied. Double-check spelling and math, and proofread paperwork before you submit it. 

       2. Misrepresented or Overestimated Damages

Insurers will turn you down flat if you misrepresent or overestimate damages. Using an insurance claim to get granite countertops is out unless your kitchen is being redone due to serious water, fire, or other damage. Witnesses and before and after photos can help make your case.

Do you really need flood insurance in Ontario? 

  1. Insufficient Evidence.

On that subject, not having adequate proof can frustrate any claim. Be detailed on the complaint form. Include receipts, photos, appraisals, and any other information that could prevent having a homeowners insurance claim denied because of lack of evidence the damage occurred or what impact it had. Don’t let your homeowners insurance claim be denied or reduced because the insurer claims your appliances were old or in poor condition. 

Making a home fire insurance claim

  1. Excluded Risks

Sewer backups, earthquakes, mudslides, or sinkholes may not be covered without buying “add-on riders”, extra insurance that increases your premium cost. Pay attention to the fine print before you sign a homeowner insurance policy. 

  1. Missed Payments

Your insurer could terminate your policy for missed payments. That would make your claim ineligible.

  1. Other Exclusion Clauses

Your homeowner insurance policy includes little details that are out of sight, out of mind. Risky behaviour, letting your home fall into disrepair, failing to secure doors and windows with locks, or making a claim against homeowner insurance for your home is a rental property can all give you a bad name and get your homeowners insurance claim denied. 

What Happens If a Claim is Denied

Denied claims can stay on your homeowners insurance record for years. If you think your claim was unfairly denied:

  • Check your policy and paperwork.
  • Review the reasons.
  • Contact the General Insurance Ombudservice
  • Hire a civil lawyer to see if you have a case.

Why You Need a Real Estate Lawyer 

Axess Law confirms you have a fire insurance binder before we finalize a condo purchase, and takes your lender’s instructions on homeowners insurance you may need to confirm you’ve met all the financing conditions in your offer to purchase.

What a real estate lawyer does. 

Asking a real estate agent for help

We review your agreement of purchase and sale before or after you sign. Axess Law looks for clauses that give you the discretion to change your mind if a real estate contract isn’t to your satisfaction. If terms and conditions that protect your right to cancel by mutual consent are missing, we liaise with the seller’s lawyer to amend the agreement.

Discharging or assuming mortgages requires the services of a licenced Ontario lawyer. Axess Law liaises with banks, credit unions, trust companies, or private lenders to ensure legal documents your lender requires are completed and registered. Our flat fee lawyer services keep mortgage discharge fees reasonable.

Why do I need a lawyer to discharge a mortgage in Ontario? 

We search title to properties you buy or sell to ensure legal claims or construction liens are dealt with before the title is transferred to the new owner. Adding names to a property title in Ontario is quick and affordable. Axess Law completes the paperwork when you buy or sell, marry, live common law, or draft your Will.

Remote Real Estate Lawyers 

Axess Law has remote real estate lawyers where you need them. Connect online with a virtual real estate lawyer using our secure, confidential video conferencing software. Use any home computer, laptop, tablet, or compatible mobile device to upload or review documents, and sign. Axess Law witnesses your signature online to complete your real estate transaction on time. 

See what to expect when you use a remote real estate lawyer

Affordable Real Estate Lawyers, Anywhere You Are 

Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario  when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it. 

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Call or Go Online for Appointments

Go online to make in person or remote real estate lawyer appointments. Try our easy web form, or personal assistance, dial our 1-877-402-4277 lawyer line (647-479-0118 in Greater Toronto Area). You can drop into any Axess Law office, at your convenience, to make day or evening appointments. 

We have onsite parking, and easy transit access.