The only thing worse than having something happen to your home is being told that your homeowner’s insurance won’t pay to fix it! Before you flip your lid and say something you don’t mean, take a look at what you should do next.
– Call your local agent to review your claim. Think of your local agent as your ally and not your enemy. Sure they work for the company that just denied your claim, but they have much experience in this area and may be able to easily pinpoint the reason why your claim was denied.
– Confirm your policy is paid in full. If an insufficiently paid for account is the reason for the denial, it should specify that in the denial but regardless, it’s always a good idea to make sure your policy has been paid in full.
– Check your policy for clauses that are not covered. This is the number one reason why claims are denied: your policy simple does not cover it. Check to see what your policy excludes and find out if your claim might fall under one of those exclusions.
– Carefully read the formal denial. Your insurance company is required to provide you with a detailed denial and if they didn’t, you need to request one. Carefully go through each detail of the denial to ensure that you weren’t denied because of a simple-to-fix technicality.
– Submit an appeal. Fill out the appeal to the insurance company acting as if you are an adjuster who has every reason to deny your appeal. Have a trusted friend look over it in case they have a different perspective that could be helpful.
– Give the insurance date an end resolution date. When you submit your appeal, specify an end resolution date. Insurance companies are not often in a hurry to resolve disputes and you don’t want this to drag on unnecessarily.
– Go to the top of the agency. If your appeal is also denied, take your claim as high as you can go within the agency. Be the squeaky wheel that doesn’t stop until you get an answer from the highest person you can access.
– Hire an attorney. If you still feel like your claim is being unfairly denied, retain an attorney well-versed in homeowner insurance claims. Keep in mind, however, that this option may not be the best financial decision for you, even if you win.