Common Insurance Claim Mistakes to Avoid

Having an insurance policy is one step, and knowing how to use it correctly, especially during a crisis, is another. When misfortune strikes and you need to file a claim, insurance claim mistakes can delay your payout or even lead to a rejection.

Over time, we’ve seen people lose what they rightfully deserve, not because they didn’t have insurance, but because they made certain insurance claim mistakes in the process. Whether it’s for your health, property, car, or business, knowing what to do and what not to do is essential.

In this article, we’ll explore the most common insurance claim mistakes people make and offer detailed solutions to help you navigate the process with confidence.

1. Waiting Too Long to Report the Incident

Some people assume they can report a claim “later” when they’re less overwhelmed or have gathered all the details. Unfortunately, this delay can backfire.

Most insurance policies have a strict time frame within which you must report the incident. Waiting too long could violate your policy terms and give the insurer a reason to deny your claim.

Solution

Notify your insurance company as soon as possible after the incident occurs. You don’t have to have every single document at hand to make a report.

A simple phone call or email to inform them that an incident has occurred is a good first step. From there, your insurer can guide you on what to do next. The earlier you initiate the process, the stronger your claim will be.

2. Not Understanding What Your Policy Covers

Many policyholders assume all damages or losses are covered. So, they file claims without reading the terms, only to find out that the situation is not included in their policy. This misunderstanding often leads to disappointment or wasted time.

Solution

Take the time to read and understand your policy before you need it. If the wording seems too technical, don’t assume you know it; ask your insurer or speak to a legal professional who can explain it in simpler terms.

You should know what is covered, what is excluded, and the exact steps to follow when filing a claim. Being informed will help you avoid surprises and file correctly.

3. Lack of Proper Documentation

One of the biggest insurance claim mistakes is a lack of proper documentation. Whether it’s a car accident, property damage, or a burglary, failing to provide clear evidence of what happened and what was lost can weaken your claim or result in the rejection of your claim.

Solution

Immediately after the incident, take clear photos or videos of the damage. If it’s a car accident, document the scene, the vehicles involved, and any visible injuries.

For property damage, take pictures of affected items or areas before cleaning or repairing anything.
Get police or hospital reports if necessary, and keep all receipts related to temporary repairs, medication, or accommodation. 

4. Making Repairs Before the Insurance Inspection

What is the need for insurance if you can fix all the damage in the first place? In an attempt to get back to normal quickly, some people start repairs or cleanup without waiting for the insurer to assess the damage.
While this is understandable, it can make it difficult for the insurance company to verify your claim.

Solution

Unless it’s an emergency, e.g., stopping a water leak or securing your home from further damage, don’t touch anything until the insurer has inspected it.

Contact your insurance company and follow their guidelines on when and how you can start repairs.
If you must do emergency repairs, take before-and-after pictures, save all receipts, and document every action taken.

5. Giving Incomplete or Inaccurate Information

Whether intentional or not, providing half-truths while leaving out details or guessing facts can be seen as suspicious.

In some cases, it may lead to claim rejection or legal consequences. Insurance companies rely on accurate information to validate your claim. 

Solution

Be 100% truthful and transparent when filling out your claim form or speaking with your insurer. If you’re not sure about a specific detail, say so.

It’s better to be honest than to guess and risk being flagged for fraud. Stick to the facts, and don’t exaggerate losses. If additional details emerge later, inform your insurer immediately.

6. Not Following the Claim Procedure

Each insurance company has its own process for filing claims. Skipping steps, submitting the wrong forms, or not following instructions can slow down the process or result in rejection.

Solution

Ask your insurer for a step-by-step guide on how to file your claim. Follow the instructions carefully, ensure you submit the required forms, and meet the deadlines.

If you’re filing online, double-check all fields before submission. Keeping in touch with your claims officer can also help you stay on track and avoid delays.

7. Failing to Seek Professional Help

Some policyholders go through the entire claims process alone, even when the situation is complex.
This can lead to missed opportunities, weak documentation, or mistakes in negotiation, especially for large claims or when there’s a dispute.

Solution

When in doubt, get professional advice. A lawyer or insurance expert can review your policy, help you understand your rights, and support you through the claims process.

If your insurer delays, underpays, or wrongfully denies your claim, a legal professional can intervene on your behalf and pursue the matter appropriately.

Conclusion

Avoiding these common insurance claim mistakes could be the difference between a successful payout and a stressful rejection. We encourage you to stay informed, act promptly, and when in doubt, seek professional guidance.