What To Do If Your Homeowners Insurance Claim is Denied

Posted by Guest Blogger on Wednesday, January 5th, 2011 at 10:37am.

Insurance Claim FormHomeowners buy insurance because it gives them peace of mind.  The moment they sign their policy they think they aren’t financially liable for any damages to their home.  This helps them sleep easier at night, at least until they actually have to file a claim.

Your insurance company doesn’t want to pay for thefts or damages to your property any more than you do.  They routinely deny claims to people who have been victimized.  While this seems unfair, insurers usually have an honest reason for denying the claim.  They can make errors or may have reason to believe that homeowners are at fault.  However, an estimated 10% of claims are unjustly denied by unscrupulous insurance companies.

Whatever the reason your claim was denied, you have the right to get the money you are entitled to.  You have already suffered from the trauma of losing property which may have sentimental value to you.  You should at least fight for the chance to help rebuild what you had before.

First and foremost, you need to look at the claim.  The insurance company is supposed to provide a reason for the denial.  Understanding why they denied your claim (or at least the reason they gave you) is the best place to start.

Fire Damage to Houston HomeInsurers may not provide coverage for certain damages.  You need to review your policy to see if there is a discrepancy between the terms stated and the rationale given in the denial.  Also, familiarize yourself with any policy maximums that are listed in your policy document.  Even honest insurers can confuse policies and deny or limit coverage.  You can’t fight the decision if you don’t catch the discrepancy.

If you believe your claim shouldn’t have been denied, you can appeal the denial with the insurer.  Filing an appeal doesn’t guarantee you will receive coverage, but it is worth a shot.  Increase the likelihood of getting your money back by documenting all evidence supporting your claim.  Even if your claim is still refused, you can use it if you decide to take the insurance company to court.

Always document all transactions with your insurance company.  If you keep records of all the paperwork you file, you can improve your odds of fighting a denied claim.  Remember, your insurance company is not going to pay for a claim if they don’t have to.  At the very least, you need to make sure they give you a good reason for denying you coverage.

About the Author

Kalen Smith teaches people to help save money on insurance.  He is a writer for Homeowners Insurance and Consumer Media Network.

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The views expressed by Guest contributors to this blog do not necessarily reflect the views of 2M Realty Advisors, LLC, it's broker, agents, employees or affiliates.

5 Responses to "What To Do If Your Homeowners Insurance Claim is Denied"

What To Do If Your Homeowners Insurance Claim is Denied | Home Pay wrote: [...]5, 2011


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Posted on Wednesday, January 5th, 2011 at 1:42pm.

Arielle wrote: It can definitely be disheartening to learn that your claim has been denied, but its nice to learn that it doesn't have to end there. Its important to take ownership in the fullest sense - not just over your home but also over your policy.

Posted on Wednesday, January 19th, 2011 at 2:43pm.

Hard Money Loans Houston wrote: An insurance company cannot usually refuse to pay a claim that is otherwise valid just because of a claim filing error in most legal jurisdictions, unless it can show that your error either harmed the company, or prevented it from investigating adequately.

Posted on Friday, January 28th, 2011 at 6:44am.

Kalen wrote: You're right. They can't refuse to because you made a mistake. But mistakes do happen and they can make errors as well. They may accidentally deny a claim through a filing error on your part and you need to pay attention to that.

Posted on Friday, February 18th, 2011 at 8:34pm.

shannon wrote: I had major damage done to our home a few weeks back due to a storm. Our roof was damaged, more than the 25%. Our screen porch needs to be replaced, major electrical damage due to a large tree on our power lines for days. Our adjuster came and only wanted the highest estimates I had so I could get the highest payout and only wanted to replace 1/2 of our roof. I knew my rights and said no. Now he is willing to pay for a re-roof but is cutting down the amount he is willing to pay. I am yet to receive anything in writting from him and he wants to send me a check?? I am very confused and still not happy with the outcome BC I know I need more funds to bring my home and repairs up to florida code.
How can I handle this or do I need to hire a lawyer?

Posted on Wednesday, April 20th, 2011 at 5:38pm.

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