Common Reasons Insurance Companies Deny Property Damage Claims

Your property has been damaged, which is difficult enough, but if the insurance company denies your claim, the matter is that much more challenging. Better understanding the reasons insurance companies commonly deny claims can help you better protect your own rights. Whatever the situation, having an experienced Chicago denied insurance claim attorney on your side can help.

One: Policy Exclusions

Before you file a property insurance claim, it’s important to understand the parameters of your property owner’s policy. Policies often include specific exclusions, which means they don’t cover specific types of damages or specific kinds of damaging events. It’s important to know your policy, but it’s also important to know that just because the insurance company spins the denial as a policy exclusion does not necessarily mean it’s true – discuss the matter with your denied insurance claim attorney.  

Two: Coverage Lapses

Consumers are naturally responsible for paying their property insurance premiums, and if your coverage has lapsed, the damage to your property may not be covered. There are instances, however, when insurance companies fail to notify policyholders that their coverage is lapsing or fail to provide the requisite grace period that can work in your favor. 

Three: Missed Filing Deadline

Your property owner’s policy includes strict filing deadlines that cannot be missed. Further, it’s generally necessary to alert your insurance provider about damage to your property much more quickly – often within one to three days by phone. Waiting to make the call can have disastrous effects on your claim. 

Four: Failure to Mitigate Damage

If your property has been damaged by a storm or fire, your property owner’s policy may require you to take reasonable steps to mitigate the damage. Failure to do so can lead to a claim denial, but insurance companies have a tendency to push failure to mitigate claims further than is reasonable.

Five: Bad Faith Denial

Sometimes, insurance companies engage in bad faith practices that can include all the following:

• Denying claims for no other reason than hoping the claimant will give up
• Denying claims based on their own failure to investigate the damage properly
• Denying claims based on their own misinterpretation of the policy
• Denying claims and failing to provide claimants with a valid reason for doing so
• Dragging their feet on claims to the point that claimants give up hope

It’s Time to Consult with an Experienced Chicago Denied Insurance Claim Attorney

If your property damage claim was denied by your property owner’s insurance provider, it makes a difficult situation more so. The practiced Chicago denied insurance claim attorneys at Anspach Law Office recognize the gravity of your situation and are well prepared to zealously advocate for a more favorable claim resolution. Your property is a major investment, and our focused legal team is committed to helping you protect it. We are on your side and welcome your inquiries, so please don’t wait to reach out and contact us for more information about what we can do to help you today.