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Top Reasons Your Insurance Policy Might Be Invalid

Updated on September 24, 2014

If you have an invalid insurance policy it most likely will result in a claim denial in the event of a claim or an insurance policy cancellation

There are questions that your insurance agent might forget/neglect to ask you that could invalidate your insurance policy. Coverage can also be disaffected by life changes that went unreported to your insurance company. Don't pay for insurance that will never pay out in the event you need to file a claim. Make sure you are covered correctly and that your insurance policies can truly buy you the peace of mind you deserve.


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Why your insurance policy might be set up incorrectly

Oftentimes when speaking with your insurance agency you may not actually be speaking with the agent but with an employee. There are many great employees out there however others are not. This is the same as in any industry but in this case it's your life on the line. Many insurance producers are overworked, underpaid and improperly trained. If through a simple mistake, ignorance, lack of time or caring your agent makes certain assumptions when writing your policy it could mean big trouble for you.

There are so many questions on a typical insurance application that most computerized systems will have answers auto-default to what is most common. It could take hours for an agent to ask every question so what happens is they don't. This is why it's important for you as the consumer to know what's important to a policy so if a particular situation applies you make sure it's known. This way you'll be protected and know that your policy is set up correctly and will indeed pay in the event of a claim.

Top Home Insurance Questions - These questions can affect the validity of your policy

If the answer is yes to any of these questions make sure you discuss with your agent. It's possible it may not be pertinent to the particular company that's insuring you. However it may well be the difference of whether your policy is set up correctly or not and in the end may be the determining factor in whether the policy will pay.

  1. Is your home leed certified?
  2. If you have a pool does it have a diving board or slide and is it fenced?
  3. Do you have a trampoline?
  4. Do you have dogs? If so what breed? Do you have any exotic animals?
  5. What is your roof type and when was it last repaired/replaced?
  6. Whose name(s) is on the title of the home?
  7. Is your home under renovation?
  8. Is your home for sale or will it be vacant for over 30 days?

Top Car Insurance Questions - These questions can affect whether your policy pays in the event of a claim

The same as with the home, if you answer yes to any of these questions make sure it's discussed with your car insurance agent.

  1. Are the vehicles on your policy titled in your name or someone else's?
  2. Are there any other licensed drivers in your household regardless of whether they have their own car insurance policy?
  3. Have you ever filed bankruptcy?
  4. Has an insurance company cancelled your policy for any reason other than non-payment of premium?

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Glovebox Organizers - Keep your car insurance and registration handy in a specialized wallet

Tips to Protect Yourself

Always look over the insurance application that you're asked to sign. Check to make sure all information is correct. If your agent tries to tell you they made a "white lie" to save you money insist they correct it or find another agent. They are simply trying to sell you a policy and aren’t being concerned with your long-term welfare.

Don't try to pull one over on your agent. Many people believe that they can leave out pertinent information like the fact that you have a teenager in the house driving your vehicle. They understand that this would affect rates and/or eligibility so they conveniently leave the information out. This might seem like a good idea until your pay for the policy for years and then said teenager gets in an accident and the claim is denied. Not being upfront only will hurt you in the end.

Whenever your agent speaks with you on the phone no matter how brief, they are probably taking irrevocable time stamped notes in a suspension diary. They are doing this to protect themselves. This protects the agent against situations like someone removing a vehicle from a policy only to make a claim on that vehicle later and deny that they had requested the vehicle be removed. It makes sense for the agent to do this but I think it also makes sense for consumers to do something similar. If your agent ever makes a warranty or claim make clear notes on whom you were speaking with, the date, and specific details of the conversation. Keep these conversation notes in your insurance policy file.


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© 2012 Melissa Miotke

Share your insurance experiences or ask any insurance related questions

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    • profile image

      CheapestInsuranceOnline 4 years ago

      In my opinion insurance Lead is just just the valid details of a customer who is willing to buy an appropriate policy. All of the required and valid details to access that customer is called lead..

    • lesliesinclair profile image

      lesliesinclair 4 years ago

      I'm not sure what "leed" is: 1 Is your home leed certified?You make important points that we should all inquire about. i'm not sure how to really be certain that I've covered all the bases with my insurance. Hope so.

    • Sylvestermouse profile image

      Cynthia Sylvestermouse 4 years ago from United States

      Insurance is definitely a necessity in today's world. You have offered some excellent advice for sure. Unfortunately, we are often responsible for protecting ourselves by being properly informed and properly insured. We are currently dealing with our insurance company on a claim. It will be interesting to see how it is settled.

    • TolovajWordsmith profile image

      Tolovaj Publishing House 4 years ago from Ljubljana

      Insurance is very similar to betting. It is all about risk management.

    • profile image

      anonymous 4 years ago

      I don't have insurance of any kind, so its not a problem until I need it...lol.

    • mihgasper profile image

      Miha Gasper 4 years ago from Ljubljana, Slovenia, EU

      I have had only good experiences with my insurance company but only in really minor accidents. I think trust based on experience is the key in this business.

    • profile image

      webscan 5 years ago

      I've purchased travel insurance many times but never needed to make any claims. I have also been an agent.

    • Melissa Miotke profile image
      Author

      Melissa Miotke 5 years ago from Arizona

      @Diva2Mom: I'm so sorry to hear about the flood-that's terrible! Good luck with the insurance company. I hope it resolves in your favor. I hope you like NC, I was born in Durham and I love the state.

    • profile image

      anonymous 5 years ago

      I have very good insurance agent, but I just can't avoid the feeling that there is still some hidden bonus or discount that I am not aware of and my agent wouldn't tell me about it:).

    • LornsA178 profile image

      LornsA178 5 years ago

      Very informative, thanks for sharing.

    • Diva2Mom profile image

      Diva2Mom 5 years ago

      Great, informative lens indeed! Thanks for all the valuable information! We actually just relocated near the Outer Banks beach, NC, from a military town in KS and just 3 weeks ago, our house got affected by the recent flooding over there, and we're actually presently dealing with our home insurance company that we thought would cover the flood damages...oh boy, Melissa, we knew from the very start to cover flooding and we're pretty sure that's what we had signed up for, but right now, they're telling us a different story...but we got our paperwork and coverage docs so got it faxed in, and now they told us to wait and see...so we'll see. Thanks so much for sharing a lot of important insurance information and useful tips; truly appreciate it, my dear! God bless you!

    • profile image

      DMVAgent 5 years ago

      Nice lens, very informative.You did a great job here, keep up.There are also websites that can help you to this, i searched it for you.This will help.http://www.dmv.com/