You have homeowners insurance for protection. Therefore, you can file a claim with the insurance company when your home encounters damage. In fact, around 5% of homeowners file claims each year after damage occurs.
The insurance company receives the homeowners insurance claim and processes it after you complete it, and they’ll respond to it. They might approve it and pay the claim, but they might also deny it.
What can a homeowner do if the insurance company refuses to pay the claim?
If you’re in this situation and need help, here is a guide to help you understand the steps you can take to remedy the situation.
Ask for an Explanation
An insurance company has a specific amount of time to process your claim and provide an answer. If you receive a letter that they denied your insurance claim, you might wonder why.
You can contact your agent to find out the reason. When filing a homeowners insurance claim, the insurance company can’t deny it without reason. Therefore, they should explain why you received a denied insurance claim.
When you learn about the reason, you might disagree with it. If this is the case, you should begin evaluating your insurance policy.
Review Your Policy
When you purchase or renew your home insurance policy, the insurance company sends you a packet of documents. These documents contain all the details about your policy, including the types of home damage it covers.
As you review your policy documents, you should be able to determine if the insurance company has a valid reason for the denied claim.
For example, if the policy specifically states that it excludes flood damage, you probably won’t have a basis for fighting a denial for flood damage.
However, if your policy doesn’t say anything that backs the insurance company’s denial, it might be time to visit an attorney.
Consult With an Attorney
Insurance companies have the legal right to pay claims for damages when the damages fall under the coverage stated in the plan. If your insurance company ignores you or denies the claim, talking to a lawyer might help.
You can visit a bad faith insurance attorney for more info about your rights and options. Unfortunately, using an attorney isn’t free.
However, insurance companies might be more willing to settle claims when policyholders hire legal counsel. So, if you’re fighting over a claim with your home insurance agent, this might be an excellent option for you to try.
Fight a Denied Homeowners Insurance Claim
You have the right to fight a denied homeowners insurance claim if your insurance company rejected or ignored your claim. However, if you feel you’re entitled to compensation, you must take action.
While it might take time to settle the claim, you could win your case and receive the compensation you’re entitled to with your home insurance coverage. While it might take time to settle the claim, you could win your case and receive the compensation you’re entitled to with your home insurance coverage.
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