A home is often a person’s largest investment and to protect that investment, they often rely on homeowners’ insurance. There are some situations, however, when a homeowners’ insurance claim is denied. The policyholder may be able to appeal the decision and there are steps to do so.
The first step is to understand why the claim was denied. The insurance company will often send the policyholder a letter with specific reasons why it would not provide coverage.
The most common reason a claim is denied is because the damage is not covered by the insurance policy. The claim may also be denied if the homeowner failed to pay their premiums on time or failed to report the claim promptly, usually within a few days of the event.
Also, the claim may be denied if the homeowner provided false information on the application, failed to take reasonable steps to prevent further damage to the property or if the damage is caused by normal wear and tear.
Before submitting the appeal, it’s helpful to gather any documentation that supports the claim. This could include photos, bills, receipts or any other relevant information. The policyholder that can submit an appeal to the insurance company.
The insurance company will review the appeal and make a final decision, based on the items covered under the policy. If the policyholder does not agree with the insurance company’s decision, they may have the option to request an independent review or file a complaint with the state insurance department.