If Your Insurance Claim Gets Denied - Does It Still Remain a Claim On Your Record?

I have spoken several times that not all damage is a covered loss when you have property damage.  Oftentimes, when you notice damage to your property, your instinct is to immediately call your insurance company and report a claim.
 
We receive calls from property owners saying they got denied on their claim and need help.  To determine if the claim was properly denied, we need to dive into what is going on and ask a lot of questions.
 
What’s The Cause of the Damage
It is always best practice to read and understand your insurance policy to know what is and isn’t covered, then assess what’s causing the damage.  If you do not know where the damage is coming from, it’s important to contact an expert and seek help. 
 
For example, a roof leak causing water damage to the interior of your property may not be covered in your insurance policy.  Water damage going on for some time can be considered long-term and may not be covered.
 
Then the question is asked, will the claim remain on their record?
 
Claim Denial on Claim Record
If your insurance claim is denied, it may not affect your claims history or record in the same way that a paid claim might. However, the fact that you filed a claim may still be recorded in the insurance company's internal systems or shared with other insurers through industry databases.
 
Here are a few key points to keep in mind:

1. Internal Records: Even if a claim is denied, your insurance company will likely keep a record of the claim. This may not affect your insurance rates or future claims, but it could be referenced if you file another claim related to the same event.
2. Shared Databases: Some insurance companies share claims information with industry databases, even if a claim is denied. This means other insurance companies might be able to see that you filed a claim. The fact that it was denied may not impact your eligibility or premiums in the same way as a paid claim.
3. Impact on Future Policies: While a denied claim itself usually doesn't impact your rates or insurance record, frequent claims (even if denied) could raise concerns with insurers, who might consider you a higher risk for future coverage.

 
Insurance Report
If you're unsure of your claim history, you can request a copy of your insurance report from databases like CLUE (Comprehensive Loss Underwriting Exchange) and review its information for accuracy and to see what may be shared with other insurers. The database collects and reports personal property and auto claims.
 
In the event you need help with a new, underpaid or denied insurance claim, Reliant Insurance Adjusters is here for you. Our team has the knowledge and experience to handle all types of insurance claims and we are here to protect our clients’ best interests. 
 
Contact us  today if you have any questions or need any guidance with your insurance policy.