Insurance provides homeowners with peace of mind. In exchange for paying
a monthly or yearly premium, they can sleep soundly knowing that if their
home is damaged by a hurricane, tornado, fire or other catastrophe, their
insurance policy will cover the damages.
At least, that’s how it’s supposed to work. Unfortunately,
homeowners often discover that the insurance company is not always eager
to hold up its end of the bargain. Even though insurance companies are
required by law to honor all legitimate claims, they often look for any
reason to avoid having to pay an
insurance claim.
Common Reasons For Denied Homeowners Insurance Claims
Here are some common reasons insurance companies deny homeowners claims.
-
Lack of coverage – Many people assume that a homeowners insurance policy covers any
damage to the house. That is not always true. Insurance policies are written
in a way to cover damage from specific occurrences and may exclude coverage
for certain losses. For example, if your home was damaged in a flood from
surface water, but you do not have a separate flood insurance policy issued
by the National Flood Insurance Program, your claim may be denied. When
purchasing an insurance policy, make sure you read the policy carefully
so that you know what is covered. -
Failure to fulfill a condition of coverage – Some insurance policies have conditions that you must comply with
in order for the insurance company to honor its agreement. For example,
if you have not kept up with your premiums, your claim may be denied.
There also may be conditions that require you to mitigate the damage to
the home as much as possible. -
Falsified insurance application – The moment you file an insurance claim, the insurance company
is likely to review your initial application in great detail. They will
compare the information provided in that application with the information
provided in your claim and identify inconsistencies. If the insurance
company can find anything that appears to be falsified, exaggerated, or
omitted on the initial application, it may be grounds for denial of your claim.
What You Can Do If Your Insurance Claim Is Denied
Many people receive a claim denial and give up hope. It is important to
know that you have legal options available. An initial claim denial is
by no means the end of the line.
Review the Denial Letter
The first thing to do is identify the reason for the denial. If the reason
your claim was denied is not listed, contact your insurance company and
demand they tell you why it was denied. The insurance company has a legal
obligation to provide you with that information.
Review Your Insurance Policy
Next, review your policy carefully to determine what is covered. Remember,
your policy is a legal document and the insurance company is required
to honor it. After reviewing your policy, if you believe the insurance
company improperly denied your claim, begin gathering evidence to support
your position. This will include things like communications you have had
with the insurance company and pictures of the damage to your home. The
more evidence you have to support you position, the easier it will be
to win your case.
File an Appeal
After compiling your evidence, you can file an appeal directly with your
insurance company. There is no guarantee that the insurance company will
reverse its decision. Regardless, it does not hurt to try.
File a Lawsuit
You may also file a lawsuit against the insurance company. To do so, consult
with a qualified and experienced insurance attorney about your potential
case. Your attorney can help you determine whether your claim was improperly
denied and file a lawsuit on your behalf based on the applicable homeowner’s
insurance laws in your state.
At Arnold & Itkin, our team of insurance attorneys has helped homeowners
across the country fight claim denials and receive the compensation they deserve.
Contact us today
to learn how we can help you.
SOURCE: Recent Blog Posts – Read entire story here.
