The Claim Killer You Don’t See Coming

Posted: 4 days, 17 hours ago

When it comes to insurance, timing is everything. Most people assume they can file a claim when it's convenient—but that’s not how insurance policies work. In fact, one of the most common reasons claims are denied is because they weren't reported quickly enough.

Insurance companies have strict deadlines. Miss them, and a valid claim could be denied outright.

Take this real-world example: A homeowner experienced what seemed like minor water damage. It was addressed at the time, and no claim was filed. More than a year later, significant hidden damage was discovered. Fortunately, because the homeowner had notified their insurance agent when the issue first occurred, the claim was still covered. Without that initial report, coverage would have been denied due to delayed notice.

So, What Does “Prompt Notice” Really Mean?

Most policies include a clause requiring “prompt notice” of any incident that could lead to a claim. But what qualifies as “prompt”?
It’s intentionally vague—but make no mistake: it doesn’t mean months or years later. In many cases, it could mean within days or weeks.

Insurance companies use this language to limit liability. If too much time passes before a loss is reported, they may argue that the damage worsened due to inaction—or that the event can’t be accurately investigated. Either way, it gives them grounds to deny the claim.

The Takeaway:

When in doubt, report it.

Whether it’s a tree branch on the roof, a minor fender bender, or a little water in the basement—report it to your agent as soon as possible. Even a quick email or phone call creates a record. If the issue turns into a larger problem down the road, that early notification can mean the difference between full coverage and a denied claim. It’s better to document a non-issue than to miss the window for a legitimate claim.