When a home is damaged, a homeowner's first move is often to file a claim with his or her insurance company. In some cases, that claim may be denied even if an individual believes that the damage is covered by the policy. If a claim is denied, it is important to review the terms of the policy carefully to see if the damage actually was covered. It may be best to do so prior to filing the claim.
Typically, claims are denied because a homeowner failed to fully document the damage or didn't do enough to prevent it. Failure to pay insurance premiums could also be a reason to deny a claim. The insurance company is required to provide a reason as to why a claim was denied, and it should be stated in a written letter. Policyholders have the right to dispute the denial or ask for further clarification.
If a homeowner still believes that the damage should be covered, it may be a good idea to appeal the denial. It is important to note that an appeal may not be resolved for weeks or months. Alternatively, it may be more effective to escalate a complaint to others who work at the insurance company. In the event that an appeal is denied, the next step might be to hire an attorney.
There may be many reasons why property insurance denials take place. If a property owner disputes the reason for a denial in his or her case, it may be worthwhile to hire an attorney to help with an appeal. An attorney may review a policy to determine if it covered the damage in question. Furthermore, a legal professional may assist in filing a complaint with a state insurance commission or filing a lawsuit.