What To Do When Your Homeowner’s Insurance Claim is Denied

When your home is damaged unexpectedly, whether from a storm, fire, or burst pipes, insurance can provide some desperately needed financial help. The fact is, claims sometimes get denied, and when yours is, it can be frustrating and overwhelming to deal with, especially when dealing with home repairs at the same time.

Having a claim denied isn’t necessarily the end of the road; often, there are things you can do to have your claim reconsidered and possibly approved.

Here are some things you need to know and steps to take when your homeowner’s insurance claim is denied.

Determine Why Your Claim Was Denied

The first thing you should do is carefully review your denial letter to make sure that you understand why the insurance company has denied your claim. The letter should list the reasons for denial, which could be issues like lacking coverage for a specific type of damage, failure to provide proper documentation or questions about potential fraud.

By understanding the reasons your claim was denied, you can better determine your next steps.  If you’ve been denied by something simple like a misunderstanding or information error, you may just need to add some clarifying facts to make it easier to address.

Here are some steps to follow that can help:

Review Your Homeowners Insurance Policy

Thoroughly review your homeowner’s insurance policy. Be sure to note your types of coverage, financial limits, and any exclusions to your coverage. A homeowner’s policy usually covers damages caused by natural disasters, theft, fire, and other common hazards. Some damages, however (like floods or black mold), may not be included in your coverage.

If the denial was based on an exclusion, you might still have some options available to you, like looking into local or government aid programs (especially when dealing with large-scale disaster damage, like a hurricane or forest fire).

Contact Your Insurance Adjuster

Once you’ve reviewed your policy and the denial notice, you’ll likely need to contact your insurance company for more information.

Ask questions about the denial and inquire if there’s additional documentation or steps you could take to have your claim reconsidered. Insurance companies often deny a claim because the required paperwork isn’t complete or is missing the required details. Your insurance adjuster should be able to let you know what specific documents or information they still need.

A quick conversation may be all it takes to determine whether these issues are correctable and if you can resubmit your claim after making updates or corrections.

Gather Supporting Documentation

Gathering more documentation, or filling in any blanks in what you’ve already submitted can also help strengthen your case, especially if you’ve been denied because of a lack of evidence. Photos, videos, and receipts related to damages can all help prove your case.

Evidence should show both the initial state of the property before the incident and the extent of the damage afterward. Estimates and contractors’ invoices for repairs showing itemized costs can also be helpful. The stronger the evidence you have, the better chance you have of getting a claim reconsidered.

Consider Filing an Appeal

Most homeowner insurance companies offer an appeals process for denied claims. The denial letter will typically explain how to appeal the decision and any deadlines associated with the process.

The appeal allows you to present additional evidence or arguments supporting your claim. When filing an appeal, make sure to write clearly and in detail, sticking to the facts and explaining why you believe that your claim should have been approved.

Seek Legal Assistance

If your appeal is denied and you still believe your claim is valid, it may be time to consult with an attorney specializing in insurance law. A lawyer can help review your policy and why you were denied, as well as assess if your insurance company may have acted in bad faith.

“Bad faith” is when an insurance company purposely tries to avoid paying out on a legitimate claim by using unfair or deceptive practices.

Here at the Law Office of Matthew L. Sharp, our lawyers understand how daunting a denied insurance claim can be, but that doesn’t mean you’re out of options. Our experienced lawyers can help you understand why you’re claim has been denied, clearly explain your appeal or legal options, and help you gather the additional documentation you need to strengthen your case.

Taking action can make all the difference.

Remember that your homeowner’s insurance is there to protect you, and while denials happen, you have the right to challenge these decisions, and we can work together toward a fair outcome and protect the value of your home.

Contact us today for a free consultation.