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What to do if Your Homeowners Insurance Claim is Denied

Though it may feel like it initially, having a home insurance claim get denied is not the end of the world. Claim rejections are actually a common occurrence, and it doesn’t necessarily mean you’re out of options.

Why do insurers deny claims?

It may be shocking initially to receive a denial letter from your insurer, but there are a number of reasons that an insurance company may reject a claim. Reasons include:

  • This covers a wide range of situations. For instance, if your roof caves in during heavy rains, but it turns out that faulty shingles that were supposed to have been replaced are to blame, this can be defined as an act of negligence on your part, and is grounds for denial. An insurer can conclude that a claim is negligent if the homeowner allows a problem to linger or attempts to repair it on their own rather than hiring a professional to correct the issue.
  • Non-covered peril. It is important to thoroughly understand the ins and outs of your insurance policy. Knowing what is and is not covered by your insurance can help avoid one of the most common reasons for having a claim denied.
  • Insufficient coverage. You can insure your home multiple ways, including at Replacement cost, or Actual Cash Value (ACV). Replacement cost allows you to repair your home to similar conditions as when it was first purchased, whereas ACV is the replacement cost minus depreciation, otherwise known as market value. If you file a claim for damage that exceeds this price, your insurer may deny it.
  • Waiting too long to file. There is typically a statute of limitation on how long you can wait after an event to make a claim, and claim denial is common for those who wait too long to file.

Have you had one a homeowner’s insurance claim denied? The Denied Insurance Claim Attorneys here at the BCN Law Firm in Clermont are here to help. Contact us today at (352)-394-2103 to schedule your complimentary consultation.