Homeowners insurance can cover damage to your property, whether it's from a burst pipe or a devastating fire.
You'll need to file an insurance claim if you want to get compensated, however, and insurance companies can reject a claim for various reasons — from insufficient documentation to the damage not being covered by your policy.
Understanding why a claim was denied and your rights as a consumer are essential.
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Why your homeowners insurance claim was denied
There are several reasons an insurance company might deny your claim, according to the Insurance Information Institute.
No policy in force
Not paying your premiums can lead an insurance company to cancel your policy and reject your claims.
The insurer needs to give you fair warning it's ending your policy, though the number of days varies by state.
Not a covered peril
Homeowners insurance covers many situations, from fires to fallen trees, but it doesn't cover everything you could face. Flooding is seldom included in standard policies, for example, and requires a separate flood insurance policy.
Neptune Flood Insurance is one of our top picks for flood insurance. Backed by Lloyd's of London, it offers features other insurers don't — like living expenses if you have to relocate, pool refill and repair and up to $10,000 belongings stored in your basement.
Neptune Flood Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Dwelling coverage: $4 million, contents coverage: $500,000
App available
No
Policy highlights
Neptune Flood Insurance offers relatively high dwelling and contents coverage for homeowners who need higher amounts of coverage than those offered by the NFIP. Neptune also offers coverage for things like the contents of your basement, temporary living expense coverage if your home is damaged and uninhabitable, and pool repair and refill.
Available in 48 states, Aon Edge has an excess flood policy with a $5 million building and contents coverage limit. The streamlined application only has 12 underwriting questions and no photos or elevation certificate is required.
Aon Edge Flood Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Up to $5 million building and contents coverage beyond NFIP policy for Excess Flood policy
App available
No
Policy highlights
Aon Edge offers its EZ Flood package is available as an alternative to NFIP coverage, and an excess flood package to build on that coverage or NFIP coverage. It offers a number of options including additional living expense coverage and food spoilage coverage.
Other common policy exclusions include:
- Earthquakes and landslides
- Normal wear and tear
- Neglect (including mold, rust and preventable damage)
- Termite, insect or rodent damage
- Damage from war, terrorism or civil unrest
- Intentional damage by the owner
Missed filing deadline
Though the deadlines vary, most policies require you to submit a claim within a year of the damage, according to the III. If you wait too long, your claim likely won't be approved.
Insufficient documentation
Filing a claim requires photos, videos, receipts and other evidence of your loss. Without enough proof, your insurer may reject the claim.
Unapproved repairs
Preventing further damage after an incident is fine. Major repairs before your claim has been approved, though, should be avoided. Let the insurance adjuster assess the situation first.
Fraud
A claim that an insurance company deems fraudulent won't be covered and can lead to the cancelation of your policy. Intentional property damage or misrepresenting, exaggerating or omitting facts can all be considered fraud.
What to do if your claim has been rejected
If your claim has been turned down, there are steps you can take to get satisfaction.
Review your policy
Even before you have a claim, you should read your policy carefully to understand what's covered, how much money you're entitled to and how to file a claim.
If the damage is related to an excluded peril, you may need to tap your emergency fund for repairs. In the case of a natural disaster, you may be able to get assistance from the Federal Emergency Management Agency.
Contact your insurance company
Your insurer should send an explanation detailing why your claim was denied. If you believe the damage should be covered, reach out to your adjuster about reevaluating their decision or even making a home visit.
Gather documentation to make your case, including photos and receipts. Keep thorough records of all communication, including what information you sent and when you spoke. Communicating through e-mail can help establish a paper trail.
Erie Home Insurance is highly ranked for customer satisfaction with the claims process by J.D. Power and has generous discounts for bundling, installing home safety devices and getting a quote before your current policy expires.
Erie Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Erie Insurance offers homeowner's insurance coverage in 12 states and offers some unique coverage features, including things like gift card reimbursement, which covers gift cards for companies that have closed, as well as coverage for animals, birds and fish up to $500, and coverage for hard-to-replace items like accounts, bills, and passports.
Does not cover
Flooding and earthquakes, identity theft, high-value items (these can all be purchased as add-ons for extra coverage)
Amica also earns praise for claims satisfaction and is available nationwide except for Hawaii and Alaska. Its Platinum Choice plan includes replacement costs of up to 130% and extended coverage for jewelry and other valuables.
Amica also pays dividends in most states, with returns of up to 20% of your premiums annually.
Amica Homeowners Insurance
Coverage
Dwelling, other structures, personal property, additional living expenses, personal liability and medical payments.
Policy highlights
Amica's Platinum Choice plan comes with 130% dwelling coverage, increased valuable coverage and higher limits for liability and medical payments.
Add-ons
Dwelling and property replacement, coverage for computers, identity fraud, water backup and home businesses
Bundling discount
Up to 30% when you combine auto, home and life insurance
Availability
Amica offers homeowners insurance in all U.S. states except Alaska and Hawaii.
File an appeal
If you believe your claim was wrongly rejected, the appeal process should be outlined in your policy. There is typically a time limit, so act quickly and include as much information as possible.
Hire a public adjuster
An independent agent hired by the policyholder, rather than the insurance company, a public adjuster can decipher your policy and navigate the claims process, making sure your side is fairly represented.
An adjuster can cost up to 15% of your potential payout, according to the advocacy group United Policyholders, so you'll need to decide if it's worth the investment.
Start your search with the National Association of Public Insurance Adjusters, which has a database of adjusters across the U.S. You can also check with your state's insurance regulator.
Be sure the adjuster you hire is reputable by asking for references. You can also check their license, though several states don't regulate or license public adjusters.
Contact your state's insurance department
If you still believe your carrier is in the wrong, reach out to your state's department of insurance, which can explain your rights and help you file an official complaint. Depending on where you live, it may also help mediate your dispute.
Hire an attorney
While it's an expensive option, you may want a lawyer to advocate on your behalf if you've been denied or received an unsatisfactory payout. Some attorneys charge by the hour and others work on contingency, taking a percentage of the final settlement.
The fee for an attorney depends on whether or not the case goes to trial, according to homeowners advocacy group United Policyholders. Typically, it ranges from 33% to 40% of your settlement.
FAQ
FAQs
Can an insurance company deny a claim?
Insurers can deny claims for numerous reasons, including insufficient information, excluded peril, unapproved repairs and fraud.
What should you do if an insurance company denies your claim?
If an insurance company denies your claim, file an appeal or hire a public adjuster to help with the process. If you're still unsatisfied, you might try reaching out to your state's insurance department or hiring an attorney with insurance claim experience.
How long do I have to file a claim?
The exact deadline to file varies but homeowners typically have a year to file a claim.
Will my insurance rates go up if my claim is denied?
Since insurers base premiums on how likely policyholders are to file a claim, a claim that's denied can cause your rates to go up — though not as much as if the claim was approved. Even discussing a claim with an agent, without actually filing it, can impact your premiums.
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