Everyone who files a claim for their house knows that the process is stressful and complicated, and it can take a long time to go through. This can be especially true if you file a denied claim the first time in your life.
It’s such a common occurrence that there is an entire website devoted to settlements from insurance claims and even more information about what you should do if your home has been lost or damaged due to extreme weather events.
If you’re one of the many people who have had a claim denied, here are some tips to help you through the process.
Get Help Early
The early bird gets the worm, and that’s true for claims as well. You should start working on home insurance claim denied as soon as possible. If you wait too long, it will be harder for you to receive compensation for any damages your home has suffered. Also, most insurance companies have a policy that allows them to start processing claims within 30 days of the incident. This can be especially true if the event wasn’t expected or if the claim is high on their list and is causing lower profits.
As soon as you see damage to your house, take pictures of it. You should also try to take several photos from multiple angles so that there isn’t any question about what needs to be repaired or replaced. It also helps if you have someone who has experience taking pictures in your area do it for you so there aren’t any issues with keeping a consistent perspective when the scene is being photographed.
Look for Copies of Cancellations and Claims Files
It is also important that you find copies of any auto insurance cancellation notices, as well as any claims files from the insurance company. These should provide the information that is needed to help you make a claim.
Inform Your Insurance Agent or Agent’s Representative
You should contact your agent or agent’s representative to inform them about the damage but also to let them know about your home insurance claim denied. They should be able to provide you with an estimate on how much compensation you will receive, as well as how long it will take for the money to reach your bank account.
The Death Of Home Insurance Claim Denied And How To Avoid It
In March of 2015, a man in Youngstown, Ohio won $1 million in a home insurance claim. It was obvious that the fire had been started by an electrical short or faulty wiring, but the insurance company denied the claim and refused to pay out. The court found against them and awarded him $1 million for his troubles. After this success story hit the news however, hundreds of other similar cases popped up across United state — homeowners who were then being sued for their profits because they had filed claims with their insurers that were later denied without reason.
It’s not clear how many people have been affected by this phenomenon; we do know however that any homeowner who has submitted two claims without success is at risk.
“Home insurance claims are not supposed to be considered under any circumstances as a result of this kind of thing. It’s viewed as fraud,” says attorney Andrew Weaver, who has represented several individuals in similar cases. “Any time someone gets a judgment against them, they have the right to file an appeal. The problem is that there should never have been a lawsuit filed in the first place.”
The victims are often left feeling that their insurance company has failed them and their property and they will have no recourse if they are being sued for damages.
“Once you submit a claim, it’s hard to retract it again after that,” explains Weaver. “This is what happens when you’re dealing with a broken system. The whole process is so arbitrary and unpredictable, especially when it comes to insurance companies. They do things that are completely out of the ordinary and sometimes there’s no rhyme or reason for their actions.”
It is important to note that the claims in these cases were not filed by homeowners but rather by a hired agent who was acting on behalf of the homeowner. After one such successful claim, an attorney decided to file the claim himself on behalf of his client and did so with two different insurance companies. In both cases he received denials — one a week apart. The same thing happened with two other claims submitted to different companies.
“The insurance companies have taken an incredibly cavalier attitude towards these issues,” says attorney Andrew Weaver. “It’s just wrong on so many levels.”
All of these people have been affected in one way or another. In most cases, the insurance companies have filed lawsuits without providing an explanation for their actions and the homeowners feel like they have no recourse for filing a claim and getting paid. They believe that their insurance company is trying to cheat them out of money, but this is not always the case.
How To Improve At Home Insurnace Claim Denied In one month
If it seems like you’ve been home insurance claim denied, don’t panic. Homeowner’s insurance claims can be denied for a number of reasons, many of which are easily fixed or avoided altogether. In this post, we’ll go over a few of these reasons and share tips on how to overcome them!
Why was my homeowners insurance claim denied?
Insurance companies have many reasons to deny a homeowners insurance claim. Some common ones include: natural disasters that cause flood damage; low deductibles when expensive items are lost in the home; uninsured losses when they require homeowner’s liability coverage (i.e. you’re not required by law to have it); damage to the home caused by theft; and water damage caused by burst pipes.
You can avoid many of these issues by taking a few simple steps. The first thing to do is check your policy. Is your deductible too low? Check with your agent on how you can change this, as most policies give you the option to make changes depending on the type of loss and home insurance claim denied. You may also want to add flood insurance if flooding is a concern in your area, or consider adding a personal liability rider if you are currently uninsured for this type of coverage.