Home Insurance Claim Being Denied

Insurance companies deny home insurance claims all the time. Sometimes they have very good reasons for denying the claim, sometimes they simply make mistakes and pay the claim later on, and then sometimes they intentionally try to get away with paying on a valid claim. No matter what, it is in the best interest of policyholders to be well-informed so that fewer mistakes occur, and insurance companies who have bad intentions are not able to deny valid claims. So, what can policyholders do to make sure their home insurance claims are not denied? They need to hire a claims handling attorney.

Reasons why your claim may be denied

• Incomplete Records – Homeowners insurance generally covers not only the real property, such as the home and structures, it can also cover the contents, such as jewelry, furniture, appliances, clothing, etc. Fire can consume the contents of a home so that it makes it impossible to figure out what was inside unless you have an inventory, such as photos or video evidence, of the items inside your home.
• Negligence – A homeowner can be found negligent by the insurance company for part or all of the damage that occurs to their home. For instance, if a home is torn apart by high-velocity winds and the homeowner had existing damage to the property, such as water rot or termite damage that contributed to the damage caused by the wind, then the insurance company may deny the wind damage home insurance claim. Why? Because if it were not for the rotting and termite eaten wood structure, the home would not have been damaged by the wind.
• Policy Exclusions – Homeowners policies have exclusion clauses that define what is excluded from coverage. Perils such as flood and earthquake damage are normally not included in a homeowner’s policy but can be purchased separately.
• Inadequate Coverage – Homeowners policies cover for specific items, such as jewelry and contents, and also for specific amounts, such as $1,000 on jewelry and $50,000 on the contents. If a thief steals the $12,000 worth of jewelry you had in your home, and you submit a claim for the complete loss ($12,000) your home insurance claim may be denied because it exceeds the $1,000 of jewelry coverage. In that case, you will need to submit a claim for $1,000, the maximum covered under your homeowner’s policy.  
• False or Exaggerated Information – When you file a home insurance claim with your homeowner’s insurance company, the first step they take will be to go through your application to see if all of the information you provided is accurate. If the company finds that you provided false or exaggerated information, your home insurance claim can be denied and your policy canceled. It is always in your best interest to be honest with your insurance company.
• Failure to Pay Premiums – When you purchased homeowners insurance, you agreed to pay your policy premiums by the due date. If you fail to do that, the insurance company has a right to deny payment for your home insurance claim due to lapsed policy coverage. No policy, no coverage, no payment by the insurance company.

How to be Proactive

• Read and Understand Your Policy – It is important that policyholders understand the coverage they purchase, and the coverage they should purchase but don’t.
• Compare Policy Coverage and Home Insurance Claim – Before you submit a home insurance claim to your insurance company, make sure that you have coverage for the damage.
• Review the Home Insurance Claim and Document the Loss – Before sending a home insurance claim to your insurance company, make sure you provide all supporting documentation.
• File and Appeal – If you have done your due-diligence and feel sure that your homeowner’s insurance policy covers you for the damage sustained, and the insurance company is still denying the home insurance claim, call Smythe Law Group, Inc.

Contacting a Property Insurance Claims Attorney

There will be times when no matter what you do and how hard you try, your insurance company will refuse to pay your home insurance claim. If you find that you need assistance in handling your property insurance claims, the Smythe Law Group, Inc. is just a phone call away. We handle bad faith insurance claims, residential property claims, commercial property claims, and insurance denials, just to name a few. We fight for the rights of property owners. Give us a call.