Why Insurance Claims are Rejected

Insurance companies might not pay out if your alarm has a malfunction This is one main reasons they don't pay out.

It is always a good idea to keep homes as well maintained as possible, but insurance companies may have just given us the best one of all.

According to the Managing Director of Alexander Forbes Insurance, Gari Dombo, policyholders who fail to maintain their alarm systems and homes in general may be in a for an ugly surprise when they try to claim for damages or loss of property.

Dombo said one of the main reasons why South African insurance groups fail to pay out claims is in the case of malfunctioning burglar alarms.

"If the alarm does not work because it is poorly maintained, the monitoring contract has been allowed to expire, or it is not switched on when the home is left unattended, your insurer is unlikely to pay," warns Dombo.

Homeowners who don't bother keeping their homes well maintained may find a similar problem when their buildings are damaged and the insurance company refuses to pay out.

This could be in the case of a collapsing roof if the timbers have been allowed to rot, or if tiles have blown off the roof if the nails have developed too much rust to hold them in place.

Dombo advises South Africans to regularly check their burglar alarms to see if they are functioning, and to have their homes checked to make sure that they are waterproof and able to withstand ordinary rain, before that first storm hits.

"If people allow their vehicles or their homes to fall into a sate of disrepair, such that they become more likely to be involved in accidents or suffer or cause loss, any insurance claims arising might be rejected as loss arising from poor maintenance," said Dombo.