Find Out If Your Claim Was Really Denied And What To Do Next
No one likes to file an insurance claim, and if you’ve had to file a homeowner’s insurance claim, you have already experienced a significant life event. You have been paying for your insurance on time, so you expect your insurance company to cover damages that arise within the scope of your insurance coverage.
However, this is sometimes not the case.
You don’t need the additional stress of seeing that your insurance claim was denied. You’re probably dealing with property damage and significant loss, and want your insurance company to compensate you so you can get back to a sense of normal as soon as possible.
It’s no secret that dealing with homeowners insurance in Florida has its challenges. If your insurance claim was denied, you should try to remain calm and consider the situation logically before letting anxiety and stress set in.
Let’s take a look at some common reasons why property damage claims are rejected, and how you can reopen your claim if possible to seek the insurance coverage you deserve.
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Was Your Property Insurance Claim Denied By Your Insurance Company?
The first step to investigating why you did not get the expected outcome is to see whether or not your claim was actually denied. There are other common reasons that could make it appear as a claim denial.
- Damage valued at below your deductible: A deductible is an amount of money you have to pay out of pocket before your homeowner’s insurance policy will kick in. If the value of your claim falls below this amount, you won’t receive compensation. In this situation, your claim was not technically denied because it did not meet the minimum requirements to be considered.
- Your claim was underpaid: Your insurance claim could come back undervalued if damages are not accurately reported. This means your claim will be underpaid and fail to cover your property damage expenses.
It’s essential to read through all of the correspondence from your insurance company and file it for future reference.
If you’re still unsure of the outcome, the best course of action is to consult with a public adjuster who can compare the damages to your insurance policy to see if you are entitled to full coverage.
Under What Circumstance Would A Property Insurance Claim Be Rejected By An Insurance Company?
Each year, 1 in 20 homeowners file a claim with their homeowner’s insurance company.
As a property owner, you rely on your property damage insurance to protect your investments and help you achieve peace of mind.
You expect your insurance company to meet their obligations, so it can be shocking to see your insurance claim denied. Since you value your property and expect your insurance company to support you in your time of need, it is essential that you understand the scope and coverage offered by your insurance policy.
While your insurance policy will vary, here are some common reasons why property insurance claims are denied.
1. Lapsed Policy
You already know you must pay your insurance premiums on time and in full. Otherwise, you won’t have the coverage you need when you need it!
Missing your premiums will cause your policy to lapse. This means your insurance policy will pause, and the insurer will not cover your property until you pay the premiums you owe.
How To Avoid:
Always pay your homeowner’s insurance premiums on time. Make it a habit to check your insurance account monthly to ensure your policy doesn’t lapse.
2. Noncompliance With Policy Deadlines
Your insurance company wants you to file your claims on time to avoid further damage. There are time-sensitive deadlines throughout the documenting and filing process.
So no matter how valid your claim is, you can still be denied if you miss the window, typically within 180 to one year, depending on your policy.
How To Avoid:
If your property damage falls under your coverage umbrella, alert your insurance company and start the claims process ASAP. This will help you avoid missing critical deadlines that can cause you to find your insurance claim denied.
3. Insufficient Documentation
As the property owner, you have the burden of proof to document all damages and losses for the insurance company.
Insurance adjusters will require as much information as possible to approve your claim. You must not only prove you owned the property in question, but you must produce documentation of its value.
So if the adjusters feel you haven’t provided enough documentation, they may underpay or deny your claim.
How To Avoid:
Start taking pictures and videos of the damages as soon as they occur. Use a fireproof and waterproof safe to store receipts and documentation for your belongings so you can retrieve information to prove the value of items on your property when possible.
Consider taking pictures of your possessions with your phone and storing the images on a cloud-based server for easy access if you need them.
4. Misrepresentation Of Situation
Occasionally, homeowners will withhold information because they are afraid of getting denied. This is the worst mistake you could possibly make because insurance providers will send their own adjusters to investigate the scene and review the police and firefighter reports.
If your insurance company suspects you haven’t represented the situation accurately, they may reject your claim.
How To Avoid:
It’s always in your best interest to communicate an accurate report of how an incident happened and what damages occurred.
Always be honest and upfront with your insurance company. Tell the truth and avoid embellishing or omitting the facts.
5. Insufficient Coverage
Much like auto insurance or life insurance, homeowner’s Insurance will protect you from many things. However, standard policies do not cover every type of property damage.
For instance, most policies do not include flood protection or coverage for the water damage done during a house fire. So homeowners may find themselves unexpectedly with a denied claim.
How To Avoid:
Talk to your insurance agent about your coverage and ensure your property insurance policy includes likely incidents in your area.
6. Undocumented Or Incomplete Repairs From Previous Claims
Sometimes lousy luck compounds, and you must file multiple claims for different incidents. You may have filed a new property damage claim while one is still being repaired.
Or you may have made additional repairs to a previous claim that you didn’t document with the insurance company. If the adjuster sees undocumented or incomplete repairs, they may deny your claim.
How To Avoid:
Always document repairs related to your insurance claims. If you have to file multiple claims, keep your documentation organized to show you are handling your responsibilities for both incidents.
Photo by Mikhail Nilov
How to Reopen Your Claim
If your insurance claim has been denied and you suspect you are entitled to coverage, you can always reopen your claim.
Your first step will be to gather any documentation and evidence that proves you were wrongfully denied. This could include:
- Details about the incident: Identify specific damages, dates, witness statements, and steps you took to avoid the incident, if applicable.
- Receipts and documentation: Collect pictures and receipts for items damaged in the incident, as well as proof of items purchased for prevention, like fire alarms.
- Independent appraisal: If the value of the loss is in question, it’s a good idea to hire an independent appraiser to give their input.
- Proof of responsibility: If the reason for the claim denial is related to negligence, gather evidence that proves you are a responsible homeowner.
You should also consult with a trusted Orlando public adjuster, who can compare the incident to your homeowner’s insurance policy to see if you are entitled to coverage for your denied claim. This can save you a lot of time, trouble, and stress over having to handle the process on your own.
Once you have everything you need, you can contact your insurance company to reopen the claim and submit copies of all documentation for their reference.
Get Expert Help With The Insurance Claims Process
The claims process can be stressful and confusing if you’re not familiar with the ins and outs of homeowners insurance.
Once an insurance company underpays or flat out denies a claim, they aren’t likely to change their mind unless you have documentation to prove your case.
At NeJame Claims Adjusting, we work tirelessly on behalf of our clients to help evaluate and refile your claims to get the insurance settlement you deserve.
Contact us today for more information on how we can help you resubmit your claim and help you get back to normal as quickly as possible.
References:
Leefeldt, E. (2021, March 26). Why Is Homeowners Insurance In Florida Such A Disaster? In Forbes. Retrieved from https://www.forbes.com/advisor/homeowners-insurance/why-is-homeowners-insurance-in-florida-such-a-disaster/
Paulus, N. (2022, July 7). Homeowners Insurance Statistics. In MoneyGeek. Retrieved from https://www.moneygeek.com/insurance/homeowners/homeowners-insurance-statistics/
FAQs
What is liability insurance?
Liability coverage is the part of your insurance that protects property owners if someone injures themselves when visiting the homeowner’s property.
What areas does standard property insurance cover?
Typically, homeowners insurance covers personal property, liability, dwelling damage, as well as damage to other structures.
How long does it take for a homeowner’s insurance claim to payout?
It can take up to 180 days for a homeowner’s insurance settlement to reach your bank account.
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