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How do you deal with a homeowner insurance denial?

On Behalf of | Sep 25, 2021 | Real Estate Law |

A homeowners insurance policy covers the policyholder from a variety of perils. Weather-related damage to the house and liability claims resulting from negligence could result in significant losses. A Florida homeowner may rely on a policy to cover any potential losses. A policy holder might feel shocked if a claim ends up denied. While a denial might be disheartening, claimants could have options for disputing the denial.

Battling a denied homeowners insurance claim

Examining the reason for a denial starts the dispute process. If the denial derives from a stipulated exclusion, the insurance provider does not need to pay. For example, a policy might not cover specific dangerous breeds when dealing with dog bite incidents. However, the policy could face a denial for more dubious reasons, such as the claimant not providing enough evidence.

Upon receiving a denial, it may be vital to receive a clear and detailed reason for the adverse response. Perhaps the insurance company will reopen and revisit the claim if the policyholder provides more evidence.

Things could become more complicated if the insurance company denies the claim based on a loose interpretation of a policy exclusion. Alternatively, the insurance provider may claim neglect caused damage and not weather damage. Outright accusations of fraud might even arise.

Taking steps to deal with the insurance company

Hiring a certified public adjuster to examine the damage and handle the claim could lead to a preferable outcome. However, the chance exists the insurance provider may ignore insurance law and refuse the claim. Suing the insurance company might then prove unavoidable.

A lawsuit’s focus could center on “bad faith,” which refers to an insurance provider’s refusal to uphold its end of a contractual obligation. A successful lawsuit could force the insurance company to pay an appropriate settlement amount.