Deny is a term often used when the insurance company says they will not pay your claim.

When something bad happens that causes damage to your property you will contact your broker or agent to start the claim process.

The agent or broker takes the information from you and notifies the insurance company of what has happened and requests that a claim be started.

The insurance company adjuster will examine your policy to see if you have the right coverage to pay the claim. An example would be sewer back up. If you did not buy sewer back up coverage and this is what has happened in your basement then you will get denied. It doesn't matter about the damage that has occurred because of the back up, you do not have the coverage and the policy is not "triggered".

If you do have the coverage then the adjuster will then proceed to determine how much of your property is damaged or needs to be replaced.

An insurance company can also deny you insurance coverage. If we consider the sewer back up situation and you have had three of these claims in a short period then the insurance company may say you are just too risky and not give you coverage. Now you have to try and find a company who will give you what you want at a reasonable price.

There are strict rules that the insurance companies have to follow if they deny insurance. Talk to your broker or agent if you find yourself in this position. This is a good time to show how they earn your commission and help you find alternate insurance.