Three Situations in Which Your Home Insurance May Deny Fire Coverage

6/7/2020 (Permalink)

Vacant home fire in Austin Springs, TN

Three Situations in Which Your Home Insurance May Deny Fire Coverage

When flames break out, these bursts can create massive amounts of damage, charring walls, and flooring. Images such as these are overwhelming, leaving property owners in Austin Springs, TN, to deal with the emotional and physical aftereffects of the home fire. It's a tall order and residents often turn to insurance to ease the cost of the recovery process. Are there times, though, when insurers won't pay? It's possible. While many policies do cover fire, they also have some exclusions. Here are three times you could see a denial.

1. When You Set the Conflagration Yourself
Arson is not allowed. Dwellers that set their own blaze cannot receive compensation. Expect for the agency to thoroughly review the initial cause, determining whether you or anyone you know set it on purpose for monetary or personal gain.

2. When the Destruction Goes Above Your Limit
Many home fire repairs are taken care of by fire restoration companies. This team writes up a preliminary report and assists property owners in seeking compensation for the rebuilding procedures. However, should that estimated amount exceed the agreement, then you might be required to cover the overage. For instance, let's say the crew determines your reconstruction bill will be $200,000. If your insurance documentation only allows for $150,000, then the agency can't cut a check for more. After confirmation, the insurer may agree to your limit and then you foot the bill for the excess.

3. When You Leave Property Vacant
When people own more than one property they may leave one location empty for long periods of time. Because no one was watching the place, the agent may argue the situation could have been prevented with someone tending to the building. This is considered a vacant home fire. Therefore, anything over 30 days could lapse your coverage and additional policies are available.
Insurance doesn't make payment for every house fire. Arson, high bills, and vacancies are grounds for refusal.