What to Do If Your Property Insurance Claim Is Denied

What to Do If Your Property Insurance Claim Is Denied

Facing a denied property insurance claim can be both financially and emotionally frustrating, especially when you’re relying on that payout to recover from a loss. Whether it’s damage from a storm, fire, or theft, a denial can feel like a setback—but it’s important to remember that denial is not the end of the road. There are clear steps you can take to contest the decision and improve your chances of a successful resolution.

First and foremost, carefully review the denial letter from your insurance company. Insurers are required to provide a written explanation outlining why your claim was denied. This letter will typically cite specific language from your policy and may reference exclusions, missed deadlines, or insufficient documentation. Look also for any discrepancies between what the insurer claims and what you experienced or submitted. Understanding the exact reason for the denial is crucial, as it determines how you should proceed in challenging it.

Next, revisit your insurance policy in detail. Many claim denials stem from misunderstandings of what the policy covers. Policies are often lengthy and filled with jargon, but it’s worth taking the time to scrutinize the sections related to your loss—especially exclusions and conditions for coverage. Be sure to read the cited policy language in your denial letter, compare it to a certified copy of your insurance policy, and confirm it does actually support the claim denial.  You might discover that the denial is based on a misinterpretation or a technicality that can be contested.

If you believe the denial was issued in error, contact your insurance company directly. This should be done promptly. Ask for clarification, provide any additional evidence they may not have considered, and calmly explain why you believe the claim is valid. Be sure to document all communications, including phone calls, emails, and letters. Keeping a detailed record can prove invaluable later.

The insurance company may respond with a request for information letter asking for any relevant documentation supporting your position that the denial was improper. This might include photos of the damage, receipts for repairs or possessions, contractor estimates, police reports, or eyewitness statements. The more evidence you have to support your claim, the stronger your case will be if you need to escalate the dispute. Be sure to respond to any requests for information promptly. Deadlines are often strict, so acting quickly is key.

If your discussions with the insurance company do not lead to a reversal of the denial, consider seeking outside help. Hiring a public adjuster can be a smart move, particularly if the claim involves significant damage or complex coverage issues. Public adjusters work on your behalf, not the insurance company’s, to seek a better outcome. Alternatively, a law firm, such as Averill & Reaney, that specializes in insurance law may be necessary if the insurer stands by the denial, acts in bad faith, or violates legal obligations. Legal representation can help you navigate litigation or even bring your case to arbitration or small claims court if appropriate.

You may also consider contacting your state’s department of insurance. Regulatory agencies often provide consumer assistance and may be able to intervene if they believe your insurer acted improperly. They can also explain your rights and help you file a complaint, which sometimes prompts insurers to reevaluate their decisions.

Ultimately, a denied claim doesn’t mean defeat. By staying organized, informed, persistent, and reaching out to Averill & Reaney many policyholders find that they can overturn denials or at least negotiate better outcomes. The key is to remain proactive, don’t ignore the denial, and don’t assume the insurer’s word is final. You paid for coverage, and you have the right to ensure that the policy delivers what was promised when you need it most.

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