Homeowner's insurance is meant to protect you against having to pay extraordinary repair costs.
The whole point of having insurance is so you won't have to pay out-of-pocket expenses to repair or replace any damages that occur to your house in the event of an accident or a severe weather event. Read the fine print on your policy carefully, and if you believe you're homeowner claim has been unfairly denied, there are steps you can take to fight it.
Send a Letter to the Insurance Company
Prepare a letter to your insurance agent. You'll want to type the letter in a formal business format. Begin the letter by stating who you are and explaining the homeowner claim. Also, explain that you believe a mistake has been made, that you believe your claim is justified and that you would like your claim reviewed again. In the third paragraph, ask to be provided with the name and contact information for the person who reviewed your original claim, and ask for copies of the files that were used to make a decision on your claim. You want to review the claim using exactly the same documentation they did to ensure everything is accurate. Finally, close the letter by thanking your insurance agent for cooperating, but let him know you will follow up, if necessary.
Formally Appeal the Decision
If your insurance agent receives your letter and still insists your claim is invalid, you can formally appeal his decision. Contact your insurance company to ask how their appeals process works. Each insurance company will have its own way of carrying out an appeal, but it usually involves a formal investigation by the insurance company. You'll be informed of the company's decision once the investigation is complete.
Hire a Lawyer
If your claim is still denied by the insurance company after your appeal, you can seek legal counsel to help you go over your policy. A lawyer can help you sift through any confusing language to see whether your claim should have been covered or not, and they'll often conduct their own investigation into your policy.
Sue the Insurance Company
Take the insurance company to court. If your lawyer can prove your claim was wrongfully denied, which is known as a "bad faith" insurance claim, you can sue the company to get your damages covered. And if you are forced to take an insurance company to court and you win the case, you may be entitled to additional money above and beyond your homeowner claim costs. Things like emotional stress, lost wages for missing work to handle the situation and any other losses you suffered because of the denied claim can be compensated in court.
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