10 habits that make insurance a nightmare when something breaks
Home and auto insurance are supposed to have your back, but certain habits can make claims harder than they need to be. A lot of it comes down to record-keeping, maintenance, and knowing your policy. If you don’t stay on top of these details, you’ll find yourself fighting an uphill battle when you need coverage most.
Not Keeping Receipts
Insurance companies want proof of value.
If you can’t show receipts, photos, or appraisals, you risk a lower payout. Keeping digital copies of receipts for big-ticket items makes claims much smoother.
Skipping Maintenance
Insurance doesn’t cover neglect.
If you haven’t maintained your roof, HVAC, or plumbing, damage caused by “wear and tear” may be denied. Regular upkeep is your best defense against claim issues.
Forgetting to Update Coverage
Your coverage should grow as your life does.
If you’ve remodeled, added valuables, or upgraded appliances but never updated your policy, you could be underinsured. Checking yearly ensures your policy reflects your actual home.
Not Documenting Damage
After an incident, failing to take photos hurts your case.
Detailed photos and videos of damage right away help prove your claim. Without them, you’re relying on memory and paperwork alone.
Ignoring Policy Exclusions
Many people don’t actually read what’s excluded.
Flooding, mold, and certain roof issues aren’t covered by basic policies. Understanding what your policy won’t cover lets you decide if extra coverage is worth it.
Not Reporting Quickly
Delaying a claim can work against you.
Most policies require prompt reporting. Waiting too long may raise suspicion or give your insurer grounds to deny the claim.
Overestimating What’s Covered
Not everything broken in an accident is automatically included.
Personal items in a car crash, for example, may need separate coverage. Always ask what’s actually protected before assuming you’ll be reimbursed.
Ignoring Small Leaks or Cracks
Those little problems can become “pre-existing conditions.”
If you let a leak or crack go for months, insurers may argue it was preventable damage. Fixing small issues quickly helps keep your coverage intact.
Forgetting to Update Your Inventory
Your belongings change over time.
Without an updated inventory, you can’t claim what you truly own. Using a home inventory app or even a simple spreadsheet helps make sure nothing gets overlooked.
Not Asking Questions
Many people don’t ask their agents about confusing terms.
When something breaks, they’re shocked by what isn’t covered. Asking questions ahead of time makes sure you understand exactly what you’re paying for.
*This article was developed with AI-powered tools and has been carefully reviewed by our editors.
