An insured event with real estate: TOP-7 reasons for refusal to pay in case of property damage

Real estate insurance reliably protects owners from most financial risks in the event of property damage. Unfortunately, however, even if you have a policy, it is not always possible to receive compensation. Find out more about the most common cases when an insurance company refuses to pay in case of property damage

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Under martial law, the issue of real estate protection is of particular importance. After all, insured automatically means protected. However, it is worth remembering that even a reliable and trusted insurance company may refuse to pay clients for damaged property. You should always keep in mind the exceptions - events that are not considered insured events under the contract.

In this article, we will discuss the top 7 most common reasons why an insurance company may refuse to cover losses and how to avoid such situations. We will also tell you why real estate insurance from Visit Ukraine is a convenient and profitable solution for everyone who cares about the safety of their home.

More useful information on real estate insurance on the Visit Ukraine portal is available here.

1. The event is not included in the list of insured risks

The most common reason for refusal to pay is when the event is simply not included in the list of insured risks. For example, if you have purchased a minimum insurance package that covers only natural disasters (fire, flood, storm, etc.) and your house is damaged by a missile, the insurance company may refuse to cover you.

Therefore, it is important to carefully read the list of risks before signing the contract. If necessary, choose an extended coverage that includes protection against the most likely risks for your region and property. Check with the insurance manager to see if there are any exclusions or limitations in the contract.

2. Incorrect execution of the contract and inaccuracies in the data

If there are errors or inaccuracies in the application form or contract, or if the owner provides false information (either intentionally or accidentally), the insurer may invalidate the contract. For example, incomplete repairs or a hidden emergency condition, etc., may result in denial of insurance payments.

Pay maximum attention when signing the contract, check all the data about the property. Do not conceal any changes in the characteristics of the property (redevelopment, extensions, replacement of utilities). If there are any changes after the conclusion of the contract (for example, repairs or reconstruction), immediately notify the insurance company.

3. Failure to comply with mandatory safety requirements

Most contracts stipulate that the property owner is obliged to maintain a certain level of security: install an alarm or fire system, take care of the reliability of doors and windows, and periodically check the power grid. If the insurance company finds a gross violation of safety rules when investigating the circumstances of the damage, the payment may be rejected.

Specify the list of mandatory security measures in the contract. Carry out routine inspections of utilities and update the fire protection system. Keep documentation confirming the installation or maintenance of security systems.

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4. Late notification of an insured event

Each company specifies the period within which the owner must report the occurrence of an insured event. If you miss this deadline or postpone it without a valid reason, the company may refuse to pay because it believes that the circumstances of the event are distorted or it is impossible to properly determine the cause of the loss.

Read the terms and conditions of the contract regarding the notice period and procedure. As soon as you learn about the loss, contact the insurer (phone, e-mail, online service). Choose insurance offers that provide round-the-clock support and assistance in paperwork, which is very convenient.

In the previous material, we provided detailed instructions on how to receive compensation for damaged insured property.

5. Deductible

The deductible is one of the key factors affecting the cost of an insurance policy, but many clients underestimate its importance when signing a contract. It determines the part of the loss that the insurance company does not reimburse and can be set at a fixed amount or as a percentage of the sum insured.

An unconditional deductible means that the amount of the deductible is deducted from the total cost of repairs, and if the costs do not exceed its amount, no compensation is paid.

A less common option is a conditional deductible. In this case, if the amount of damage is less than the deductible, the insurance company does not compensate anything, but if it exceeds the established threshold, the entire amount is paid without deductions. When choosing insurance, you should carefully evaluate the terms of the deductible to avoid misunderstandings when applying for compensation.

6. Use of real estate in violation of its intended purpose or for illegal purposes

If a residential apartment is intended for living under the contract, but in fact it is used as an office or business without the insurer's consent, the company may refuse to pay out. The same goes for any illegal or inappropriate use (e.g., storage of hazardous substances, etc.).

Use the property strictly in accordance with the purpose specified in the contract. If you plan to change the purpose (for example, from residential to commercial), be sure to agree with the insurance company and amend the policy.

7. Intentional acts and fraud

If the insurer establishes that the damage or loss of property was caused by the owner's intentional actions or an attempt at fraud (for example, an artificially created emergency situation to obtain a claim), this will always result in a denial of insurance. Moreover, there may be serious legal consequences.

Do not resort to fraudulent schemes - with professional expertise, all circumstances are quickly clarified. In case of doubtful situations or lack of confidence in insurance procedures, it is better to consult a lawyer immediately.

How to get home insurance on Visit Ukraine?

Getting home insurance on Visit Ukraine is a quick and convenient way to protect your property from various risks. There are currently three options for insurance coverage:

1. Basic apartment insurance - covers natural disasters, illegal actions, household risks, and also covers damage to neighbors in case of damage to their property due to your unintentional fault.

2. Apartment insurance with war risks - in addition to the standard coverage, it provides compensation in case of damage from falling missiles, drone debris, explosions of ammunition (except for chemical, biological and nuclear weapons).

3. House insurance with military risks - has similar insurance coverage as the policy for an apartment, but covers the entire house and the surrounding area.

To take out an insurance policy, you need to follow a few simple steps:

- Select the sum insured, region, and policy start date;

- Fill in the information about the property and the policyholder;

- Confirm the registration via a code from your email;

- Pay for the policy in a convenient way (Visa, Mastercard, Apple Pay, Google Pay, WayForPay);

- Receive a ready-made insurance document by e-mail.

What is the cost of real estate insurance from Visit Ukraine?

The cost of real estate insurance at Visit Ukraine depends solely on the amount of insurance coverage that the homeowner chooses independently. Factors such as the size of the apartment, number of rooms, floor, cost of repairs, or number of residents do not affect the final price of the policy.

Each owner can estimate the value of their home and choose the optimal level of coverage. If you are looking for a more affordable insurance option, you can take out a policy covering only basic risks - it is cheaper, but does not include compensation for damage caused by military operations.

Earlier, we told you how to save money on real estate insurance.

You can apply for an insurance policy in a few minutes on the Visit Ukraine portal. If you have any questions, please contact the hotline via WhatsApp or Telegram. Protecting your property today is a smart investment in financial stability. The cost of insurance coverage starts from €40 per year, which guarantees peace of mind and protection in any situation.

Choose an insurance policy and don't worry about your real estate!

We remind you! Not all Ukrainians know that they can protect their homes from the most common risks, including fire, flood, theft, and war. Find out how real estate insurance works in Ukraine and how much it will cost to protect your apartment or house.

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