When you buy a property, you will want to do all you can to protect it. As a result, you will likely have purchased a property insurance policy to be safe. However, it may not protect you as expected. Your insurer may fail to cover you as promised despite paying premiums.
Here is why you may experience this.
To keep money in their pockets
Unfortunately, the business side of the insurance industry can be complicated. To make profits, insurers look to minimize payouts. An insurer may act in bad faith by denying your claim or compensating as little as they can to protect their profits.
What tactics do they use?
Your insurance company may avoid flat-out denying your claim because they know it will get them into trouble. Thus, they may use more devious tactics, including stating you violated the agreement, missed deadlines for filing or payments, submitted insufficient documentation or were not covered for the particular damage.
While these factors may contribute to legitimate claim denials, they may also be used to conceal improper ones. Thus, you need to pay attention to the reason your insurer gives. For instance, if they say your policy does not cover the particular damage, yet it’s listed in your agreement, you should be alarmed.
Another thing an insurer may try is to insist on using a current version of a policy, which does not cover the particular thing you need, despite the policy you took out covering that thing. If they informed you of the change at the time of renewal, they may be justified, but if not, you may have a case.
If you believe your insurance company has treated you unfairly, consider legal guidance to receive the compensation you deserve.