What should I do if my Homeowners insurance claim is denied?


So, you have been paying your Homeowners insurance premiums for years, and when the time comes to get compensation for substantial damages caused to your home, your Homeowners insurance provider backs off, rejecting your insurance claim.

No matter what their justification may be, remember you can always question their decision and get it reversed, if you feel it has been unfair.

Tips for Dealing with Homeowners Insurance Claim Denial

  • Don't take "no" for an answer if you feel your Homeowners insurance claim has been unjustly rejected. Statistically, insurance companies wrongfully deny about 10 percent of all insurance claims. Few claimants are aware of the fact that they can still try other ways of getting a better settlement. In fact, more than half of the people who ask for their claims to be reviewed get better results.
  • Demand a written explanation of the Homeowners insurance claim denial from your insurer - most states require that you carry such a document if you apply for a review of your claim and yet, few insurers provide an explanation in writing unless you ask for it.
  • Carefully compare the reasons for rejection with your Homeowners insurance policy. Only proceed further if you have found inconsistencies between the reasons for denial of your insurer and your policy's insuring agreement. Explain in writing why you feel your claim has been unjustly denied, quoting passages from your policy that have been misinterpreted by the insurer.
  • Contact your state's insurance department for help: they will be able to tell you how to proceed. Alternatively, you can hire an experienced agent, such as a professional loss consultant, to deal with the claim for you. These practitioners usually charge between 10 and 15 percent of the Homeowners insurance claim but if they are good enough to manage to increase the claim amount, your compensation will not be eaten away by their fees.
  • Don't forget to keep in touch with the insurance provider on a regular basis, keeping a log of all conversation details, including phone calls, letters and responses.
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