Understanding Fire Damage Claims: 8 Common Reasons for Denial and How to Prevent Them
Denied Fire Damage Claim?
According to the United States Fire Administration, there were over 350,000 residential fires in America in 2021. Fire damage can be devastating for homeowners, both emotionally and financially. After a fire, many homeowners turn to their insurance policies for assistance in rebuilding and recovering their losses. One of the saddest calls property insurance lawyers take is from a client who has had their fire insurance claim denied or underpaid, leaving them often in a very untenable housing position and crisis.
In this blog post from our property insurance lawyers, we'll explore some of the common reasons fire damage claims are denied and provide valuable insight on strategies homeowners and business owners can utilize to prevent their fire damage claim from being denied and secure the coverage they are entitled to.
Eight Reasons Fire Claims Get Denied:
1. Late Reporting of the Claim:
Many claims are denied or questioned because the homeowner took too long to report the fire damage. This delayed reporting can lead insurers to doubt the validity of the claim.
Notify your insurance company immediately after the fire occurs. Prompt reporting is crucial in ensuring a smooth claims process. One of the first calls you make after knowing everyone is safe and accounted for should be to your insurance company to notify them of your fire loss. If you are asked to make an examination or statement under oath, please counsel with a property insurance lawyer near you before making any statements. Check out the linked blog post from our property insurance lawyer on how to prepare for examination under oath to your insurance carrier.
2. Inadequate Documentation:
One thing that people sometimes do to slow down or halt the claims process is to not provide enough documentation or support for their fire damage. Insufficient documentation of the fire damage can hinder the claims process.
Document the damage thoroughly with photographs, videos, and written descriptions. Ensure all necessary documents, forms, and evidence are included in your claim submission. Double-check for accuracy. We counsel our clients to routinely create and update an inventory of the items in their homes before a loss occurs, as this can create real-time snapshots of your personal property and furnishings. After a loss, this can help inventory damaged items and give a base line of estimated value. Check out the linked blog post for tips on claiming damages for loss of use.
3. Policy Lapses or Non-Renewals:
One of the saddest events that causes fire loss denials is an inadvertent lapse in the policy. Claims may be denied if a homeowner's insurance policy has lapsed or was not renewed before the fire. Regularly review your insurance policy documents and ensure your insurance policy is up-to-date and paid promptly. Renew your policy before it expires, and if it has expired, immediately get your policy renewed to avoid any lapse in coverage.
4. Misrepresentation or Fraud:
One of the worst things you can do in making a claim is to make untrue statements or wild embellishments of the truth to your insurance company. Providing false information or attempting insurance fraud can result in claim denials and subject you to criminal or other civil charges. Always provide accurate information when applying for or filing a claim. Honesty is essential throughout the process.
5. Excluded Causes of Fire:
Always review your policy for exclusions. In some cases, insurance policies may exclude coverage for specific causes of fire, such as arson or unattended cooking. Review your insurance policy to understand exclusions. Ensure you take necessary precautions to prevent fires related to excluded causes.
6. Unmaintained Fire Alarms and Sprinklers:
In some cases, failure to maintain fire systems, including alarms and sprinklers, can lead to insurance companies denying fire claims. Always maintain your equipment and systems. Insurers may deny claims if fire alarms or sprinkler systems were improperly maintained or inoperable. Regularly inspect and maintain fire alarms and sprinklers. Keep records of inspections and repairs.
7. Failure to Prevent Further Damage:
Mitigating your damages is always a good decision. You should take the necessary steps to prevent further damage. Neglecting immediate steps to prevent further damage after a fire can result in denial of claims. Implement temporary measures to secure your property and prevent additional damage, and as always, document these efforts with pictures and video.
8. Disputes Over Valuation:
Insurers and homeowners may disagree on the valuation of damaged property. Seek professional assessments and appraisals from licensed professionals to support your claim damages and valuation claims. Be prepared to negotiate with your insurer.
Conclusion:
Experiencing a fire is traumatic, and filing an insurance claim for fire damage can be complex. Homeowners can increase their chances of a successful claim resolution by understanding the common reasons for claim denials and taking proactive steps to prevent them. Homeowners may not fully understand their rights or the claims process, leading to denials. Always consult with a property insurance lawyer who specializes in fire damage claims. They can provide legal guidance, advocate for your rights, and navigate disputes with your insurer. Being prepared and informed is critical to effectively handling fire damage claims. Click the link below to schedule your free consultation with one of our experienced property insurance lawyers.
