Third-Party Liability Claim Denials: 25 Reasons could be denied during a water damage insurance claim:
- The policyholder should have notified the insurance company promptly about the water damage.
Third-Party Liability Claim Denials if the Policy or Policyholder
- does not cover the type of water damage that occurred.
- does not cover the property or person affected by the water damage.
- did not take reasonable steps to mitigate the damage or prevent further damage from occurring.
- caused the water damage intentionally.
- was not permitted to access the property where the water damage occurred.
- did not have liability coverage as part of their insurance policy.
- did not pay their insurance premiums, or their policy was canceled or expired at the time of the water damage.
- needed to provide more evidence or documentation to support their claim.
- The insurance company determines that the claim is fraudulent.
- did not cooperate with the insurance company’s investigation or failed to provide the requested information.
- did not allow the insurance company to inspect the damaged property.
- did not provide accurate or complete information accordingly,
- basically violating their insurance policy’s terms in some way.
- needed to follow local building codes or regulations.
- The policyholder did not follow the advice or instructions of a professional water damage mitigation company or other experts.
- The policyholder did not take appropriate steps to prevent personal injury or other harm to third parties.
- did not have a legal obligation to pay for the damages claimed by the third party.
- is a business, and the water damage was caused by an employee or subcontractor not covered under the policy.
- did not have the necessary permits or licenses to perform the work that caused the water damage.
- The policyholder failed to maintain or repair their property reasonably.
- The policyholder did not comply with industry standards or best practices for preventing water damage.
- caused the water damage while engaging in illegal activity.
- The policyholder caused the water damage while operating a vehicle or vessel not covered under their insurance policy.
