Although it’s not typical for a renter’s insurance claim to be denied, it can happen. To avoid being one of the unlucky few, keep in mind these common reasons for renter’s insurance claim rejections.
Moving without alerting the insurance company
Because you take out the renter’s insurance policy in your name, it is easy to assume that where you go, it goes. But your renter’s insurance policy will almost always be tied to the space you are renting, or at least the general geographic area. If you move without informing your insurance company and updating the policy, they have grounds to deny your claim.
Not having all residents on the policy
This most often becomes a problem when one person is renting the apartment and another moves in later — such as a roommate, partner or friend. If they are not added to the policy, claims regarding damage they cause may be denied.
You will not be able to treat your new roommate as a visitor when working with your insurance company, so always update your policy when someone new moves in.
Being unable to document ownership of items in the claim
If the items claimed are small and common to own, the company may not ask for proof of ownership. However, if you claim damage or loss of, for example, four computers, this raises red flags with the company. Most homes do not have that many computers, so the company will ask for proof of ownership. If you are unable to provide documentation, the claim will likely be denied.
Missing a payment
This is perhaps the most common reason claims are denied. Many people only pay their insurance when they get a reminder in the mail or by email.
If you miss the note or it gets lost in the shuffle, you could be in for an unpleasant surprise if you end up filing a claim. Set your own alerts and reminder notifications for payment due dates.
To learn more about what you need to do to protect yourself from renter’s insurance claim denials, speak with your insurance broker.