When their customers make house insurance claims, insurance companies can be on the hook for large payouts. While your premiums are meant to pay for the costs of an accident, insurance companies will look for any grey areas in your policy to reduce or deny your claim.
Reasons Your Claim Could Be Denied
Some of the most common reasons insurance companies cite for denying a claim include:
- Arguing that a policy does not cover the cause of loss. Most policies have a list of insured perils, and depending on the nature of the damage, the company may argue that the damage was not covered. If you’re denied, for this reason, it may be worth having someone look at how the company classified the cause of damage and check that it is accurate for more information contact with Jared J Davis .
- You did not fulfill a condition of the policy. You have obligations and conditions under your policy, for example: preventing or mitigating damage, cooperating with the insurance company, contacting the insurance company right away about the loss, or paying your premiums. If you fail to meet these obligations, the insurance company may argue that the claim should be denied.
- The policy period did not cover the time of the loss. Your insurance policy probably renews each year – that year between renewals is the “policy period.” Coverage limits and/or terms may change between periods. If the damage was suffered before the policy started, or after the year elapsed (without being renewed) the insurance company might argue that the claim should be denied.
Partial Claim Denials
Having a house insurance claim denied-in-full is somewhat rare, but insurance companies may try to reject certain parts of your claim to reduce their payout. Here are some of the ways an insurance company may try to reduce their payout and retail pay org.
#1 Rejecting Additional Living Expenses
Additional living expenses coverage helps pay for the costs of living outside of your home. It includes rental costs (short-term and long-term), and costs over-and-above what your family would usually pay if you had the use of your home for essentials such as food, transportation, pet boarding, or laundry.
It can be easy to misunderstand additional living expenses and your insurer may disagree about the eligibility of certain expenses. You might expect a cost would be reimbursed when you incurred it, only to find out later that it is being denied.
#2 The Pre-Loss Condition of Your Home
A company may dispute the pre-loss condition of your home. You may have forgotten to tell your insurer that you replaced your vinyl flooring with hardwood. If the hardwood is subsequently damaged in a loss, the insurer may deny the value of the hardwood, and only provide coverage for the vinyl they thought existed pre-loss. Always keep the insurer informed about upgrades and renovations.
#3 Disagreeing Over Contents
There may also be disagreements over the contents of your home or their value. Be sure to make a thorough list of your belongings before you submit it to the insurance. If you have access to the home after the loss, take photos or videos to help prove that you owned certain items and that they were in fact damaged.
How to Dispute a Claim
You can dispute partial or full denials of your claim. Start by finding a public adjuster or home insurance claim lawyer if your claim is significant. There are firms such as Virani Law that specialize in home insurance claims after fires and floods. They act almost like a public adjuster, but since they are a law firm, they can take formal legal steps to argue for a fairer claim as well. Most of the time, claim disputes do not go that far.
A law firm like Virani Law makes home insurance claims easier by taking you through the dispute step-by-step and advocating on your behalf. The insurance company has an adjuster evaluating your claim. An attorney or public adjuster is in a position to evaluate the fairness of that claim and argue if they find you should be given a better offer.