Why Your Insurance Claim Might Get Rejected
Filing a homeowners insurance claim should be straightforward. You pay your premiums, something bad happens, and your insurance company helps cover the damage. Right? Well, not always.
The truth is, thousands of legitimate claims get denied every year. And most of the time, it’s not because the insurance company is being sneaky. It’s because homeowners make avoidable mistakes that give adjusters a reason to say no.
If you’re shopping for Homeowners Insurance in Chicago IL or you already have a policy, understanding these pitfalls can save you serious money and headaches down the road. Here’s what you need to know.
Mistake #1: Waiting Too Long to Report Damage
This one trips up so many people. You notice a leak in the ceiling after a storm, but life gets busy. You figure you’ll call the insurance company next week. Big mistake.
Most policies require “prompt” or “timely” notification of damage. Some even specify exact timeframes. When you delay reporting, adjusters start wondering if the damage really happened when you say it did. Or if it got worse because you waited.
The fix is simple. Report damage as soon as you discover it. Even if you’re not sure it’s covered, make the call anyway.
Mistake #2: Not Documenting Everything
Here’s the thing about insurance claims — your word isn’t enough. You need proof. And not just a little proof. You need lots of it.
According to the National Association of Insurance Commissioners, insufficient documentation is one of the top reasons claims get denied or underpaid.
What should you document?
- Photos and videos of all damage from multiple angles
- Receipts for damaged items when possible
- Written descriptions of what happened
- Contact info for any witnesses
- Records of all communication with your insurer
Pro tip: Create a home inventory before anything happens. Walk through your house with your phone, recording everything you own. Store it in the cloud. You’ll thank yourself later.
Mistake #3: Making Repairs Before the Adjuster Shows Up
Your roof is leaking. Water is pouring into your living room. Of course you want to fix it right away. But hold on a second.
You’re allowed to make emergency repairs to prevent further damage. Actually, most policies require it. But there’s a big difference between temporary fixes and permanent repairs.
If you patch that roof before the adjuster can inspect it, you’ve just destroyed evidence of how bad the damage really was. Now the insurance company has no way to accurately assess your claim.
Do what you need to stop the bleeding. Put up a tarp. Board up a broken window. But leave the real repairs until after documentation is complete.
Mistake #4: Not Understanding What Your Policy Actually Covers
This might be the most common mistake of all. People assume their homeowners insurance covers everything. It doesn’t.
Standard policies typically don’t cover:
- Flood damage (requires separate flood insurance)
- Earthquake damage (requires separate coverage)
- Sewer backup (often requires an endorsement)
- Normal wear and tear
- Pest infestations
- Mold (in many cases)
Before you file a claim, actually read your policy. Know your coverage limits. Understand your deductible. Homeowners Insurance Chicago IL policies can vary widely, so don’t assume yours matches your neighbor’s.
Mistake #5: Filing Claims for Small Stuff
Got a broken window that costs $300 to replace? Your deductible is $1,000. Should you file a claim anyway?
No. Absolutely not.
Every claim you file goes on your record. Too many claims — even small ones — can get your policy cancelled or make it harder to find coverage later. Insurance companies track this stuff through databases.
Save your claims for significant damage. If the repair cost is close to your deductible, just pay out of pocket and keep your claims history clean.
Mistake #6: Ignoring Maintenance Issues
Insurance covers sudden, unexpected damage. It doesn’t cover problems that happen because you didn’t take care of your home.
That slow roof leak you’ve been ignoring for two years? When it finally causes your ceiling to collapse, don’t expect full coverage. The adjuster will likely find evidence that the damage was preventable.
Professionals like Six Corners Insurance recommend keeping detailed records of home maintenance. Regular roof inspections, HVAC service, plumbing checks — document it all. This proves you’ve been a responsible homeowner.
Mistake #7: Being Dishonest on Your Claim
This should go without saying, but it happens more than you’d think. Some people exaggerate damage. Others claim items that weren’t actually destroyed. A few completely fabricate incidents.
Insurance fraud is a crime. Period. And insurance companies have investigators who are pretty good at spotting it.
But even honest mistakes can look suspicious. If you accidentally overstate the value of damaged property, it can cast doubt on your entire claim. Be accurate. Be truthful. When you’re not sure about something, say so.
Mistake #8: Accepting the First Settlement Offer
The adjuster comes out, looks at the damage, and offers you a check. Great, right? Not necessarily.
First offers are often lower than what you’re actually entitled to. Insurance companies are businesses. They’re not trying to rip you off, but they’re also not going to volunteer extra money.
If the offer seems low:
- Get your own repair estimates from licensed contractors
- Review your policy coverage limits carefully
- Ask the adjuster to explain their calculations
- Request a re-inspection if you disagree
- Consider hiring a public adjuster for large claims
You have the right to negotiate. Use it.
Mistake #9: Throwing Away Damaged Items
Your couch got soaked in a flood. It’s ruined. You want it out of your house immediately. Understandable.
But those damaged items are evidence. If you throw them away before the adjuster sees them, you’ve weakened your claim. The insurance company might reduce your payout or deny coverage for those specific items.
Take photos first. Lots of them. Then wait for approval before disposing of anything significant. When you need Homeowners Insurance Services in Chicago IL, understanding these procedures makes the claims process much smoother.
Mistake #10: Not Getting Professional Help When You Need It
Some claims are simple. A tree falls on your fence, you file a claim, you get a check. Done.
But major claims? House fires, severe storm damage, theft of valuable items — these are complicated. And the stakes are high.
Don’t be afraid to get help. Public adjusters work on your behalf (not the insurance company’s) to maximize your claim. Attorneys can step in if your claim is wrongly denied. Even just asking questions can make a difference.
For additional information on protecting your home and navigating insurance matters, plenty of resources are available online.
Frequently Asked Questions
How long do I have to file a homeowners insurance claim?
Most policies require prompt notification, typically within 24-72 hours of discovering damage. However, you usually have one to two years to actually file the formal claim. Check your specific policy language because timeframes vary. Waiting too long can result in automatic denial.
Can my insurance company drop me for filing too many claims?
Yes, they absolutely can. Most insurers will consider non-renewal after two or three claims within a three to five year period. This is true even if the claims were legitimate. It’s one reason why filing small claims often isn’t worth it.
What should I do if my claim gets denied?
First, get the denial in writing with specific reasons. Then review your policy to see if the denial is justified. If you disagree, you can appeal directly with your insurer, file a complaint with your state’s insurance department, or hire a public adjuster or attorney to fight on your behalf.
Does homeowners insurance cover Homeowners Insurance in Chicago IL properties differently than other areas?
Coverage terms are generally similar, but premiums and specific endorsements can vary based on local risks like weather patterns, crime rates, and building costs in the Chicago area. Always compare policies carefully.
Should I file a claim if damage is close to my deductible amount?
Generally no. If the damage is only slightly above your deductible, you’ll receive minimal payout while adding a claim to your record. Most experts suggest only filing claims for damage that significantly exceeds your deductible — usually by at least $1,000 or more.
