Repudiation is the term when Insurance Companies reject the policyholder’s claim due to undisclosed information to the Insurance Company or policy conditions which have not been fully met. It is always advisable to seek the help of a claims management company in this instance. Sometimes it can be easily turned around with the production of information in the right manner which has been misinterpreted by the Loss adjuster.
The Fine Print
When signing up or renewing a policy it is critical that the policyholder checks that they fully meet all policy requirements regardless if they are Domestic or Commercial. Insurance Companies use underwriters who have the role of wording insurance policies in such ways that it minimises the risk for insurance companies to pay out claims. During a claim process the Insurance Company would use an Insurance Adjuster & 3rd Party Companies to act on their behalf to find any problems where the policyholder may have neglected or overlooked their role of maintaining the policy contract.
In recent studies by the The Association of British Insurers, they have announced that 1 in 5 insurance claims are rejected. The data analysed by the ABI focused on the outcomes of 6.9 million claims received and handled by some 19 individual home insurance providers.
The Biggest Cause Of Repudiation
Online comparison sites and Insurance brokers also have a lot to live up to as a review of the statistics prove that the major causes for the refusal of claims were because they were not set up properly and cover did not exist under the policy terms. The policyholder is responsible for carrying our the policy stated by the terms in the fine print. This would include maintenance or enclosing of information that might impact the the policyholder or the property/business. Repudiation could be caused by lack of regular maintenance carried out by the home owner or business owner.
Beware of taking long holidays. If you leave a property Unoccupied for 30 consecutive days or more without advising your insurer, they could have grounds to repudiate a claim.This is especially true for fire claim damage and water damage.
How To Avoid Repudiation
When planning to claim, it is vital to engage a Loss Assessor as soon as possible. Insurance Loss Assessors are insurance claims handling experts that can candle all aspects of an insurance claims on your behalf. Their goal is to receive the best settlement from the policyholder according to the terms & conditions of the policy. Using their expertise, they can review your policy and negotiate, conduct meetings with the Insurance Loss Adjuster. Having a Loss Assessor by your side means less stress and full professional engagement with the Insurance Company to receive full entitlement.