What do you do when home insurance you’d come to rely on to protect your home and valuables doesn’t come through and your claim is denied? Well, it turns out that about half of home insurance claims are denied; and though about only 1% is ever appealed, half of those who do receive some kind of payment from their insurer. Here are some tips to keep in mind as you go through this process.
Know your Policy before You Claim
Before you ever purchase your policy make sure you are familiarized with what it will and won’t cover. Be sure to be upfront with your agent when you don’t understand something; they will be happy to take the time to offer further explanation in the effort to get you up to speed with what you are actually buying. If you are thinking about making a claim, review you policy so that you are better able to communicate exactly what you expect.
Call your Agent
Before filing the claim, call your insurance agent to discuss the details of the claim beforehand. You’ll be able to feel out whether or not a denial is likely, and hopefully elicit a modicum of good advice. If you think your agent isn’t being wholly trust worthy, locate a third-party agent who will be able to offer a quote as well as advice free of any conflict of interest.
Record Keeping
If it turns out your claim is denied, make sure you obtain proper documentation from your insurance company explaining exactly why the claim was denied. This way, you will have documented points to refute in an appeal, or in a law suit.
Appellate Process
Use the explanation of denial to craft an appeal that refutes the points of the denial by referring back to your policy contract. If you have retained a third-party agent, make sure to run it by them before ever submitting back to your insurer.
Lawyers
Should the appeal ever fail, there are lawyers that specialize in law of this type. Usually they will provide free consultations to suss out whether or not your claim is viable. But be aware that the legal process could take years, and should you lose the cost of litigation for both you and your insurer may come to fall squarely on your shoulders.