If you’ve recently submitted a homeowners insurance claim and were denied, you may be wondering why this happened. As it turns out, there are several reasons your claim could have been denied, most of which are based on the nature of your claim and the amount of damage involved. If you’re interested in learning more about why your homeowner’s insurance claim was denied, keep reading to discover some common reasons you might not have gotten the settlement you expected or needed.
How do I know if my home insurance company denies my claim?
If you don’t hear from your insurance company for days, weeks or months after filing a claim, that could be a sign that something is wrong. If you haven’t heard anything in more than 30 days, call your insurer and follow up with them. Don’t let them put you off—insurance companies are required to have staff who can field questions about claims 24 hours a day and seven days a week. If they say they aren’t ready to answer any questions yet, ask when they expect to finish their investigation and call back then. If it’s been more than 30 days since filing your claim, there’s no law saying that an insurer has to tell you why they’re denying it or give you a timeline on when they might do so. But if they won’t talk to you at all, consider hiring an independent adjuster (an expert in evaluating property damage) to review your case. They’ll be able to tell you whether your insurer is right or wrong and help make sure that they pay what they owe. You can find one by asking friends and family members for referrals or checking online resources like Find-A-Pro. A good adjuster will work independently of your insurance company; meaning he or she won’t get paid unless he wins you money from your insurer. But even if you hire someone else, still try calling (and emailing) your insurer periodically just as a reminder that you’re waiting on them.
What are some reasons why a homeowner’s insurance claim is denied?
If you filed a homeowner’s insurance claim and were denied, you’re not alone. Every year, thousands of people are told that their claims have been denied. Most commonly, there are three reasons why an insurance company will deny your claim: 1) It wasn’t caused by an insurable event; 2) You weren’t following instructions from your adjuster; or 3) There was a pre-existing problem. If you can figure out which one applies to your situation, you may be able to successfully appeal your denial. Let’s take a closer look at each reason in turn. The #1 Reason Why Your Insurance Claim Was Denied: Insurable Event vs. Non-Insurable Event: In general, if you make a claim on your homeowner’s insurance policy, it must be related to damage caused by an insurable event. An insurable event is something that is listed in your policy as being covered. Examples include fire, windstorm/hail, theft and vandalism. But what happens if none of those things apply?
Who can help me if my home insurance company denies my claim?
If your homeowner’s insurance company denies your claim after a storm, fire or other event, you may be able to appeal. Some home insurance policies allow you to file an appeal with a third party, such as an arbitration firm. Typically there is a fee associated with using an outside mediator, but you might be willing to pay it if it means being compensated for damages and expenses. If your policy does not have an appeals process that uses a third party mediator, you can try filing a complaint with your state’s department of insurance. They may ask you to provide documentation from your insurer about why they denied your claim. They’ll also want information on what steps you’ve taken to resolve the issue with them directly. The department will review both sides of the story before deciding whether to mediate or investigate further. It could take months for them to get back to you, so don’t expect instant gratification! You can also contact a lawyer who specializes in homeowner’s insurance claims; however, he or she will likely charge more than $1,000 per hour (and probably even more than $2,000 per hour).
Can I get my deductible back when the home owner’s insurance company denies my claims?
If you were denied a claim for damages or repair on your home and want to know whether you can get back your deductible, then read on. You may be able to recover your deductible, but it all depends on when you purchased insurance and what kind of policy you have. While most insurers will not refund a policyholder’s entire deductible amount if an insurance claim is denied, they do typically pay out a portion of it. In fact, some insurers don’t offer any reimbursement at all in such cases. So how much can you expect to get back? It all comes down to where you live, how long you’ve had your policy, and which type of coverage plan you have. There are two main types of homeowners insurance: replacement cost value (RCV) and actual cash value (ACV). The former pays out based on what it would cost to replace damaged items with new ones while ACV pays according to their current market value. When filing a claim under RCV coverage, insured’s are generally entitled to receive whatever money they need in order to replace damaged items with new ones that match their original quality.
Why does it matter if you have a high deductible for your home owners policy?
A deductible is simply how much you pay out of pocket before your insurance kicks in. For example, if your house has a $1,000 deductible and you have a fire that causes $15,000 worth of damage, you’ll be on your own for covering those first $1,000. By having higher deductibles you pay less in premiums but will have to foot more of a bill if something bad happens. It’s important to consider both costs and risk when deciding what is best for you and your family but keep in mind that insurers may not offer coverage with high deductibles depending on where you live. You might want to check with a local agent about what options are available to ensure your homeowners policy meets your needs. Also remember that there can be exclusions in certain areas so talk to an expert like one from YCS or another insurer. And don’t forget—homeowners insurance isn’t just for fires! You should know what other types of disasters your policy covers and which ones aren’t included. Read our guide below to learn more about this coverage and how they can protect you against damages caused by natural disasters.
