Reasons Your Property Insurance Claim May Be Denied

By Jesmany Jomarron, Esq.

After a disaster such as a fire or flood occurs to your home or business, perhaps the worst news is finding out that your claim has been denied. It might seem like a shock to receive a notice of claim denial from your insurer. However, there are many reasons for an insurer to reject a claim. Here are some of the most common reasons for claim denials, and tips to help prevent this possibility in the future:

Failure to Meet Deadline

After sustaining major property damage, you need to jump into action. The last thing you want is to lose out on your ability to obtain coverage because you missed an important deadline. Generally, most property insurance policies require insured parties to notify the insurance company of their damage as soon as is reasonably practicable under all facts and circumstances.

Insufficient documentation of the damage

To recover the full compensation that you deserve under your property insurance policy you will need to offer evidence that supports your claim. Far too many homeowners have their policies denied or delayed simply because they fail to present sufficient documents or evidence to their insurance company.

Exclusion in Policy

It’s important to carefully read the details of your policy. Understand which perils are covered, and which are excluded. No matter how comprehensive your insurance, it probably has a plethora of exclusions. Policy exclusions list certain events and/or damage excluded from coverage. Many property insurance disputes arise because the company argues that the damage in question falls under a policy exclusion. Unsurprisingly, the big insurance companies are very aggressive when trying to apply policy exclusions. If your claim has been denied because of an “exclusion”, you are not out of options. The insurance company does not get the final say on this matter.

Failure to Mitigate 

It is your responsibility to take reasonable steps to prevent damage to your home and to take action after an incident to stop damage from getting worse. This is called mitigation. Insurance companies expect their insurance customers to mitigate damages, and your insurer might deny your claim if it appears you did not do enough to keep the damage from worsening.

Tips To Help You Avoid Denial of Your Claim 

• Read your policy. It is important to know that you actually have the appropriate insurance coverage for your individual needs.

• Always act fast. After a storm or other damaging event, start taking photographs, obtaining evidence and documenting your losses and immediately notify your insurer of the damage.

• Take steps to mitigate your damages. You could be held liable for some of your only losses if the investigation determines that you failed to protect your property. Take immediate action to remedy any condition on your property which could lead to further damage. Insurance policies generally require the insured to mitigate his damages. Discuss with your insurance adjuster whether the policy will pay for temporary repairs. It is also equally important to communicate your efforts to mitigate damages and business interruption with your insurance company.

• Seek professional help. If the insurance company is not cooperating or treating you unfairly, it may be time to get an experienced property insurance attorney by your side.

If your claim is being denied, delayed or underpaid, hiring a homeowner’s insurance lawyer that knows property insurance lawyer in your state can make a big difference in the success of your claim. The insurance company has a team of lawyers working for it to make sure they don’t pay you. You should have a team of lawyers working for you too! FPJL will aggressively represent you to ensure you get the money you are owed without any further delay by the insurance company. Our team of attorneys have decades of experience providing affordable representation to Individual and Corporate policy holders facing a wide range of denied, delayed or underpaid insurance claim issues.

Contact our law firm today at (305) 300-3000 for a free consultation!