Anyone operating one form of insurance coverage or the other tends to take certain wrong steps when filing a claim which brings up the need to discuss the mistakes to avoid when filing insurance claims.
The mistakes in question are often very negligible and easy to commit but the impact they have may be grievous and that is why it is very important to avoid them.
Simple Mistakes To Avoid When Filing Insurance Claims
Failure To Go Through Your Policy
This is one mistake some policyholders make when filing insurance claims. For you to properly secure your business or whatever thing that is being insured from losses, there is a need for you to have a proper understanding of what the insurance policy you opted for covers. Be patient enough to read through the policy because that is the only way to know the risks that are covered.
Go through the entire terms of the contract and if you have a challenge in understanding anything, seek the help of your broker or agent. Also, be very sure that you understand the obligations that will qualify you for payment for loss suffered.
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Delay In Notifying About A Loss
This is one of the conditions contained in several insurance policies. It says that when you incurred a loss that your insurance policy covers, it is important that you notify your insurer immediately.
It is easier to make adjustments on claims when an accident just occurred because the evidence will still be fresh, but when you delay in making your complaints, your insurer may find it challenging to believe the severity of the damage hence making your claims unsuccessful.
According to the commercial property form standards and ISO general liability, it is expected that your insurer is notified immediately a loss occurs. Failure to make prompt notification will be regarded as a breach of contract and you may be denied your claims.
Improper Documentation
Before you can lay hold of your entitlements as a result of a loss, there’s a need for you to have detailed information to qualify for a claim. Some of the information your insurer requires is clearly stated in the conditions. For instance, it is expected that you provide complete details of both damaged and undamaged properties. It must include the costs, values, quantities, and the amount that you are claiming, the evidence of loss incurred which may include videos, photos, and written records.
Also, make documentation of every discussion you have with your insurer and any other person regarding your claim. Retain copies of every document given or mailed to your insurer.
Lack of Cooperation With Your Insurer
This is also one of the several mistakes to avoid when filing insurance claims and this is because according to the ISO commercial property, it is expected that you cooperate with your insurer during the period of findings relating to a claim for a loss or damage. Failure to do, your insurer can use it as a ground for delaying payments for the damage or depriving you of the privilege to get the coverage.
Refusal To Retain Damaged Property
This may arise when you are ignorant of certain rules. For instance, you incurred damage caused by fire or some other factor, you may want to discard the damaged property because you properly felt that there was no use keeping it. Well if you have the intention of claiming payment for the loss, it is advised that whatever thing that was damaged must be left exactly the way the havoc occurred until it is inspected or examined. This is another requirement under the property policy.
More so, the affected property should be properly kept to avoid further destruction of it. Failure to do so can result in loss of proof that is needed to approve the payment for the loss.
The business auto policy has it in its requirements relating to the inspection and protection of damaged property. In a scenario, where you insure your car under collision or comprehensive, you must ensure that the car does not encounter further damage and also, make sure that proper inspection takes place on the car before any form of repair is carried out.
Non Involvement Of The Police.
Where you have encountered a loss as a result of a law being broken by a third party either a neighbor or thief and there is evidence to back it up, the standard commercial property demands that the police should be contacted. An example of such includes a security gadget that reveals a robbery case. This case is referred to as burglary and it is a crime. So for this reason, the police must be informed. The involvement of the police may also be applicable in the case of an accident. Note that a report from the police concerning a case can help to assist the process of your claim.
Making An Out-of-Pocket Payment To A Third Party’s Claim
A third party may have sustained some injuries while on your property, it will not be proper for you to make a payment from your pocket instead it is expected that you opt for an insurance claim. This is because the real effect or impact of the accident may not be revealed at the point of the accident until after some days just like some injuries will not appear to be serious until after some days.
Besides, according to the ISO general liability form, it is prohibited for an insured person to make voluntary payment for damages over property that is under insurance coverage without the consent of the insurer. Although a first aid may be applied where necessary to save the situation from a further loss.
Your claim may be rejected if you have gone to make payments for a loss without consent to recover the money you spent. This is because it will be termed as a violation of the insurance policy.
Taking Responsibility For An Accident
In an accident where someone else gets injured or encounters some damages on their property, don’t be quick to accept fault because you may not know the real cause of the accident as the cause may be different from your thoughts. The liability policy refuses policyholders from taking responsibility for faults without the consent of the insurer.
Conclusion
By carefully considering some of the mistakes to avoid when filing insurance claims that have been listed above, you will save yourself from a lot of troubles that may arise and you will find it easy getting payments for your insured property when damage or loss occurs.
