homeowners insurance denial: What to Do If Your Homeowners Insurance Denies Your Claim

Homeowners insurance denial: A burst pipe has flooded your basement, a fallen tree branch has pierced your roof, or a fire has ravaged a portion of your house. You breathe a sigh of relief – you have homeowners insurance for a reason! But then, the unthinkable happens – your claim gets denied.

Understanding the Denial


There are several reasons why your homeowners insurance claim might be denied. The most common reasons include:

  • Coverage Exclusion: The damage isn’t covered under your specific policy. For example, flood damage or earthquake damage might require separate policies.
  • Policy Violations: You may have unknowingly violated your policy terms, such as leaving your home vacant for an extended period.
  • Insufficient Information: The insurance company might feel they lack the necessary evidence to assess the claim accurately.
  • Underinsurance: The value of your coverage might not be enough to cover the repairs.

Reviewing Your Policy


The first step after a denial is to thoroughly review your homeowners insurance policy. Look for the specific clauses outlining coverage and exclusions. This will help you determine if the denial is justified or if there’s room for negotiation.

Taking Action

Contact Your Insurance Company


Don’t accept the denial at face value. Contact your insurance company and request a detailed explanation for the denial. Be polite but firm, and ask them to walk you through the reasoning behind their decision. This conversation can often clarify misunderstandings or highlight missing information that could strengthen your case.

Gather Evidence

The key to getting your claim approved often lies in strong evidence. Here’s what you’ll need:

  • Documenting the Damage: Take comprehensive photos and videos of the damage as soon as possible. Capture the extent of the destruction from various angles, including close-up shots of specific details.
  • Police Reports and Fire Department Records (if applicable): If the damage resulted from a crime or fire, obtain copies of the official reports for your records.
  • Receipts and Estimates: Collect receipts for any temporary repairs or mitigation efforts you undertook to prevent further damage. Additionally, gather estimates from qualified contractors to repair the damage.

File an Appeal

If you believe the denial is wrong, you have the right to file an appeal. Your policy will outline the specific appeals process, including deadlines and the information required. Carefully follow these guidelines and submit a formal appeal letter outlining your case and the evidence supporting your claim.

  • Understanding the Appeals Process: The appeals process typically involves a review by a senior adjuster or supervisor within the insurance company.
  • Submitting a Formal Appeal: Your appeal letter should be clear, concise, and factual. Briefly explain the situation, the reason for the denial, and why you believe the decision is incorrect. Attach all the evidence you’ve gathered, including photos, reports, and estimates.

Seeking Additional Help

If your appeal is unsuccessful, consider seeking additional help:

  • Public Adjuster: A public adjuster is a licensed professional who advocates for policyholders in insurance claims. They can help you navigate the claims process, negotiate with your insurer, and ensure you receive a fair settlement.
  • Lawyer: If your claim is significant or the situation becomes complex, consider consulting a lawyer specializing in insurance law. They can advise you on your legal options and represent you in any disputes with your insurance company.


A denied homeowners insurance claim can be stressful, but don’t give up easily. By understanding the reasons for denial, reviewing your policy, gathering evidence, and following the appeals process, you can increase your chances of a successful outcome. Remember, the key is to act promptly, document everything meticulously, and be persistent in advocating for your rights.


  1. How long do I have to file an appeal?

The deadline for filing an appeal will vary depending on your insurance company’s policy. It’s crucial to review your policy documents and act quickly to avoid missing the deadline.

  1. What should I do if the insurance company offers a lowball settlement?

Don’t feel pressured to accept the initial settlement offer. Carefully review the offer and compare it to the estimates you obtained from contractors. If the offer seems insufficient, gather additional documentation to justify your request for a higher payout. This could include comparable repair costs in your area or additional estimates from other qualified contractors. You can attempt to negotiate directly with the insurance company, or consider seeking help from a public adjuster or lawyer.

  1. Can I cancel my homeowners insurance if I’m unhappy with the way my claim was handled?

Yes, you have the right to cancel your homeowners insurance policy at any time. However, keep in mind that finding a new policy after a denied claim might be difficult and potentially more expensive. It’s often better to try and resolve the issue with your current insurer before switching companies.

  1. What steps can I take to prevent a claim denial in the future?
  • Review and Update Your Policy Regularly: Your home’s value and your needs might change over time. Regularly review your policy to ensure your coverage limits are adequate and consider adding endorsements for specific risks if necessary.
  • Maintain Open Communication with Your Insurer: Don’t hesitate to contact your insurance company if you have questions about your coverage or need clarification on specific exclusions.
  • Document Everything: Keep meticulous records of your home’s maintenance history, including receipts for repairs and improvements. This documentation can be invaluable if you need to file a claim in the future.
  1. Should I file a complaint with the state insurance department?

If you’ve exhausted all options with your insurance company and believe they have acted unfairly, you can file a complaint with your state’s department of insurance. They can investigate your claim and mediate a resolution between you and your insurer.


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