5 Next Steps When You Have an Insurance Denial of Claim
Was your home insurance claim denied?
Property insurance premiums are on the rise, with the average rates resting around $1,200 a year or more. However, even though homeowners are expected to pay more, insurance companies will do whatever they can to pay less.
If you’re dealing with a property insurance denial of claim, we can help. In this article, we’ll review the 5 steps you should take immediately after finding out your claim was denied. By taking swift action, you could reverse the decision, and collect the funds you need to fix your home.
Read on to learn the ins and outs of insurance claims and denials.
Table of Contents
1. Review Your Policy Coverages
The very first thing you should do when you experience a property insurance denial of claim is to review your coverages. Either access your policy declaration and binder online or request your insurance provider emails one to you.
Next, double-check what the list of covered perils are. One of the most common insurance coverage problems is flood damage. A lot of homeowners mistakenly believe their insurance policies will help cover losses due to floods.
However, flood insurance policies are separate from homeowners’ policies. Instead, a homeowner’s policy’s usually covers water damage from broken appliances or leaky roofs.
2. Double-Check Your Claim
Next, double-check the wording of the claim you submitted to the insurance company. You may have made a small error that is causing you the denial of your claim. Websites like Insuranceclaimhq.com can review your claim denial to see if the insurance company’s violating contract laws.
You can also ask your insurance provider to give specific details as to why the claim’s being rejected. The more you understand about the reasons surrounding the denial, the easier it’ll be to fight back.
3. Look at Your Deductible
Is your deductible higher than the damages you’re filing a claim for? If so, that could be why the claim isn’t going through.
For instance, let’s say a storm breaks one of your living room windows. If the window is worth $500, and your deductible is $1,000, the insurance company is going to deny your claim.
4. File an Appeal
Moving on, you can file an appeal with your insurance provider to get them to review your claim again. When you file an appeal be sure to provide as much evidence as possible supporting your claim. Photographs and inspection reports will go a long way towards getting you approved.
5. Launch a Complaint
If the insurance adjuster doesn’t revise their claim decision after your appeal, it’s time to file a complaint. You’ll need to file your formal complaint with the department of insurance for the state you live in.
Fighting an Insurance Denial of Claim
Don’t wait to take action after receiving an insurance denial of claim. The sooner you file an appeal, and possibly a complaint, the better your chances will be for receiving the compensation you need.
Remember to gather as much evidence as possible surrounding the damages. Also, don’t be afraid to ask your insurance provider to get specific about why they’re denying your claim. For more ways to fight back on financial injustices, check out the rest of this site.