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What to Do When Homeowners Insurance Denies Your Claim

What to Do When Homeowners Insurance Denies Your Claim - Aldrich_Legal_month_2_blog_2_Feb_22_resizeSince 1955, homeowners insurance has helped owners protect their property and belongings against damages and theft. According to the Insurance Information Institute, over 93% of homeowners in the US have homeowners insurance coverage, paying around $1,585 per year to protect their homes. On average, 1 in 20 homes files an insurance claim each year, allowing homeowners across the country to cover total losses greater than 56 billion U.S. dollars.

But what if you have reported losses and damages and your homeowners insurance company denies you coverage? You may be eligible for an insurance dispute to help you claim the benefits you are owed. Learn about the legal options to explore to protect your home in this guide by Aldrich Legal Services.

Common Reasons for Homeowners Insurance Claim Denials 

Homeowners insurance policies are designed to provide you with monetary reimbursements to cover the cost of unexpected losses and damages. Depending on the policy, these could be related to home damage (hail, wind, fire, water, and lightning, sometimes also mold and rust), personal property (furniture, electronics), and even liability or injury. 

However, sometimes, it is possible for your claim to be denied. In this case, you will receive a formal letter from your insurance company explaining why your claim has been denied. 

Some common reasons for claim denial include:

  • The damage is beyond the policy’s coverage
  • You have filed your claim after the deadline specified in your policy (usually a 30-day period)
  • You have not paid all of your premiums
  • The insurance company suspects insurance fraud on your part

Understanding the Insurance Dispute Process

The first step is to call a trusted attorney to help you navigate the often complex process of insurance disputes. An attorney can help you compare the explanation from your insurance company with your policy and then represent you in any further dealings with the company, avoiding common pitfalls and fighting for your due compensation. The process usually involves the following steps. 

Submitting a Complaint

If you are a policyholder in good standing and you have filed a legitimate claim without delay, your insurance company is required to reimburse your losses. Unfortunately, if your claim is denied, it can be hard to convince insurance adjusters to reverse their verdict. That’s where your attorney comes in—they know the steps to take to increase the chances of a positive outcome.

If you can prove that the insurance company hasn’t fulfilled its obligations, you can bring your evidence to your agent or adjuster. Alternatively, you might file a formal complaint with your local insurance commissioner. 

Filing an Appeal

Filing an appeal is a good next step if you haven’t gotten the outcome you want from filing a complaint with your agent or insurance company’s claim adjuster. 

During a claim appeal, the insurance company will review the denied claim, as well as the supporting evidence that you have been able to provide that proves why your home damages should be covered. 
If you have opted to file an appeal against denial of coverage, there are two important factors to keep in mind:

  • There is usually a deadline for filing an appeal, which is specified in your homeowners insurance policy. Make sure you act quickly after receiving the letter of denial from your insurer. 
  • The clearer and better organized your evidence, the more likely you will be to get a fair review of your claim. 

Filing a Lawsuit

As a last resort, you might consider filing a lawsuit against the insurance company. If you have decided on this option, keep in mind that you should never undertake the journey without the help of a professional. At Aldrich Legal Services, we’ll do everything we can to resolve the issue before we get to this step, but if we need to, we’re always ready to go the distance with you.

Partner With a Real Estate Lawyer

From the beginning of your insurance dispute to the very end, you should partner with an expert who knows how these insurance companies operate. With expert representation from Aldrich Legal Services, you can navigate insurance claims disputes with years of expertise on your side. Our attorneys know the tactics insurance companies use to try to avoid paying out claims, and they will fight to get you the compensation you deserve.

Don’t Try to Handle Insurance Disputes Alone. Call Aldrich Legal Services in Plymouth, MI, and Ann Arbor, MI Today.

Insurance companies are known to twist words to try to get homeowners to admit fault and avoid paying out benefits. At Aldrich Legal Services, we are deeply familiar with the tactics these companies use—we can represent you in all dealings with your insurance company to protect you from these pitfalls. Before you talk to your insurance company, call Aldrich Legal Services! 

FAMILY LAW 88: The trial court found that the children did not have an established custodial environment with defendant because, before the separation, he did not have a large role in the children’s lives.

The trial court credited plaintiff’s testimony that, before the parties’ separation, defendant spent minimal time helping to care for the children, so its finding that the children would not have looked to defendant for guidance, discipline, the necessities of life, and parental comfort during that time was not against the great weight of the evidence.

REAL ESTATE 89: RM had not included any language in the deed providing that the property was a joint tenancy with full rights of survivorship, the property instead became a tenancy in common.

RM drafted the deed without seeking counsel and mistakenly believed that, if either she or FK died, the property would fully pass to the surviving tenant. FK’s will provided that if his wife predeceased him—which she did—the personal representative of his estate should sell any residual property that he owned and divide the cash proceeds equally among his surviving children.

FAMILY LAW 83: A trial court can terminate a parent’s rights and permit a stepparent to adopt a child.

A trial court has discretion to terminate a parent’s rights and permit a stepparent to adopt a child when the conditions of MCL 710.51(6) are met. MCL 710.51(6)(b) requires the petitioner to establish that the other parent had the ability to visit, contact, or communicate with the children, and substantially failed or neglected to do so for a period of two years.

PROBATE 53: The trust agreement included an Incontestability Provision.

A settlor’s intent is to be carried out as nearly as possible. Generally, in terrorem clauses are valid and enforceable. However, a provision in a trust that purports to penalize an interested person for contesting the trust or instituting another proceeding relating to the trust shall not be given effect if probable cause exists for instituting a proceeding contesting the trust or another proceeding relating to the trust.

FAMILY LAW 82: Court stated it would terminate the personal protection order (PPO) after the parties present documentation of the initiation of the divorce proceedings.

However, the trial court concluded that these matters should, in fact, be in the province and the jurisdiction of the Family Division and in that respect, having issued a personal protection order, the Court stated it would terminate the personal protection order after the parties present documentation of the initiation of the divorce proceedings.

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