A staggering 1 in 5 insurance claims face the possibility of being repudiated, meaning rejected by the insurer. Considering how often this happens on insurance claims, policyholders should be aware of what this means. To shed light on the terminology, it’s a good idea to understand the process leading to claim repudiation and the steps to take if faced with this challenging situation.
In its most basic concept, if an insurance company does not provide payment for a claim, they will refer to the claim as repudiated.
Why has my claim been repudiated?
There are various reasons why a claim might not be accepted, whether justified or not. Let’s explore some of these factors.
- The cause of the damage is not covered by the policy e.g., maintenance related.
- A condition within your policy has been breached.
- An exclusion within your policy has been applied.
- Essential information has been withheld and not been provided to insurers (non-disclosure), or the insurers feel that you have purposely provided incorrect information (misrepresentation)
- There has been an element of fraud.
The decision can come at a shock for the policyholder, who may not know what to do next.
Due to several technical elements involved in a claim, repudiation is often misunderstood, which sometimes results in a dispute or complaint.
Further, if a claim be repudiated incorrectly, and the repudiation is not challenged, the policyholder has not been treated fairly
Unfortunately, this couple in Northampton were experiencing a lot of stress and discomfort on their insurance claim after they found dark marks appearing in their hallway and study.
The claim did not seem to be progressing in the right direction after speaking to the insurer’s representative. After sourcing their own leak detection company, they were then told about Kylie Crane’s services at Aspray. Kylie was then able to fully assess the damage to the property in its entirety and form the necessary report that could move the claim forward to begin the reinstatement works.
Get expert help on repudiated claims
Pulling together the relevant evidence could be challenging. In this instance, consulting with a professional Loss Assessor like Aspray can be very helpful. Aspray has supported many policyholders facing claim repudiation, often overturning decisions made by insurers.
Aspray actively encourages policyholders to obtain full knowledge and understand of their insurance policy. This knowledge empowers policyholders when faced with the daunting prospect of claim repudiation.
In current times, industry experts want to reduce the number of repudiated claims and with that, reduce the number of complaints on a claim. Understanding the full contents of your insurance policy upholds your end of fostering a fair claim process.
If you feel that your claim may have been incorrectly turned down and would like a second opinion, contact Aspray. Our highly trained and experienced team of claims handlers and loss assessors are happy to help.
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