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My Homeowner's Insurance Claim Was Rejected. Now What?
A homeowner’s insurance policy is meant to cover losses on your home and when you consistently pay the monthly premiums for that policy, you expect your insurance company to pay when a loss does occur.
In many cases, a homeowner’s insurance policy operates as it should. However, sometimes insurance companies try to avoid payment under the terms of their own policies.
If you sustain a loss that you believe is covered by your homeowner’s insurance policy and your insurer rejects the claim, your insurance company should explain to you in writing reasons for denial of your claim, including which provisions your claim does not meet or which provisions preclude you from having a valid claim. You should re-read these sections of your policy so you can understand the insurance company’s reasoning fully and in context.
Common reasons why a claim is denied include the following:
- The policy does not cover the causes of the damage;
- The insured did not take adequate preventative steps;
- The damage claimed was not properly documented;
- The claim is found to be suspicious or questionable; and
- The homeowner’s premiums have not been paid.
Appeal the Denial
Most insurance policies allow for an appeal of a denial. If you decide to file an appeal of the rejection, you should write a specific appeal that is responsive to the initial denial. Keep in mind that the insurance company may use any written or oral statement you make against you later if you file a suit.
If your insurance company denies the appeal, then you have the option to file a lawsuit. If you chose to file a lawsuit, you should do so with the help of an insurance coverage attorney. If you prevail in court, a court may also find that your insurance company was in bad faith in failing to timely approve and pay your claim.
Have a Wisconsin Insurance Coverage Dispute Attorney Review Your Case
Your home is one of your most valuable assets, and it is worth the fight to get your insurance claim approved. You should retain an insurance coverage dispute lawyer to help you during this process.
An insurance company and its lawyers are professionals at rejecting claims. Further, most homeowners do not have extensive experience with insurance claims and insurance law. So, retaining an attorney who understands your policy and the ways a court may interpret your policy is critical to getting coverage.
Contact the knowledgeable Milwaukee insurance coverage dispute attorneys at Gimbel, Reilly, Guerin & Brown, LLP at 414-271-1440.
Sources:
https://docs.legis.wisconsin.gov/statutes/statutes/628/III/46
http://www.foxbusiness.com/features/2015/03/11/what-to-do-if-your-homeowners-insurance-claim-is-denied.html
https://cgw.cgwnetservices.com/~cgwnet/ins%20brochures%20faqs%20etc/consumers%20guide%20to%20homeowners%20insurance.pdf
https://adjustersinternational.com/reasons-denial-claim/
