Homeowners’ insurance cover is supposed to be a tool that relieves you of any financial stress if your house gets damaged. However, this is not always the case. Some insurance companies have the liberty to reject claims made by homeowners. While there are reliable insurance providers that are sure to cover any damages on your property, some will look for any excuse to avoid paying anything.
Imagine a catastrophic disaster such as wind storms, fire, or any unexpected accident damages your property. And since you’ve been paying your premiums religiously year in year out, you file a claim with your insurance provider. Then you get a letter or receive a call from your provider that the claim is denied.
It’s not a secret that some insurance companies don’t like paying out claims. They will do everything to ensure that they don’t pay a penny or reduce the amount they are supposed to pay.
However, you don’t have to panic when the dreaded denial letter is sent through the mail by your insurance company. You can take a few steps to try and turn things around.
Hire an Expert
Since insurance companies know that many homeowners don’t comprehensively understand an insurance policy’s terms, they may hire engineers to evaluate the incidence and justify why they won’t cover the claim. They may use some clauses, such as lack of proper documentation, negligence, or coverage issues, to reject your request.
While some of these reasons given for claim denial may be valid, it can be challenging to know them yourself. You need to hire an insurance expert to help you navigate the entire process. A private insurance adjuster or engineer can help you get a second professional opinion by assessing your property’s damage. They provide an approximate estimation of the damages for comparison purposes. Their estimates can help you confirm your insurance providers’ accuracy or offer a basis for you to argue your case. Additionally, they can help interpret the clauses in your insurance policy, ensuring that you know exactly what the insurance provider is supposed to cover.
Create a Report
If your claim is denied, you should start to consolidate all the materials and documents about the damage and use them to create a comprehensive report on the matter. Collect all pertinent details of the incident, including damages, dates, witness statements, and steps you took to prevent the accident. Also include pictures of the property before and after the incident and receipts of items bought to enhance safety, such as fire alarms or security systems.
Also include estimates and statements from independently hired experts. If the provider is citing negligence as the reason for the denial, collect evidence that shows that you perform regular maintenance on your property and you are a responsible homeowner.
Get Weather Forensics
It is your job to show that the said accidental event destroyed your property. Sometimes, your insurer may refute claims that your property was damaged by wind, storm, or floods. To back up your claims, you should get weather forensics to show that the disaster actually happened in the specified location. Getting forensic material can help establish that a weather disaster actually caused structural damage to your property.
Evaluate the Policy and See If They Are Denying the Case Under an Exclusion That Is Convenient for The Insurance and Not the Insured.
While property insurance cover differs from one provider to the next, some policies may have exclusions that lean more towards the insurance company. If your claim is denied, you should evaluate the policy phrase by phrase to try and uncover any foul play. You should try to find out the type of damages excluded from your insurance coverage policy.
Seek to understand whether the denial’s basis was biased towards you and whether your provider denied the claim in bad faith. Hiring an expert to help you understand the policy terms is advisable since some of the stipulations can be confusing.