Many people work years to afford to purchase a home so if it is destroyed or damaged in a fire, it can be devastating. The homeowner may assume that their homeowner’s insurance policy will pay for the repairs, but unfortunately, those claims are sometimes denied.
Fire claim denial reasons
There are several common reasons why an insurance claim may be denied. When a homeowner purchases an insurance policy, it outlines the terms and conditions of coverage. If the policy has an exclusion for fire damage, the homeowner may be responsible for paying for the repairs. For example, the policy might exclude coverage if the property was intentionally set on fire or caught on fire because of a natural disaster.
In some situations, a claim is denied because the insurance company suspects that the homeowner is acting fraudulently or misrepresenting information.
Claims are also commonly denied because the insurance company believes there is a lack of evidence or documentation to support the claim. Documentation can include an inventory of items that were damaged or destroyed in the fire, photos, receipts and repair estimates. It’s helpful for the homeowner to gather and preserve as much documentation as possible.
Partial claim payments
The homeowner may receive a partial payment from the insurance company. Often, this is because the insurance company states that the policy does not cover the full value of the property that needs to be repaired.
If the homeowner does not take preventative measures to prevent further damage to the property, the insurance company may only agree to pay for a portion of the cost.
If a homeowner’s claim is denied, they may be entitled to seek compensation and reimbursement for expenses that should have been paid under the policy. Because fire damage restoration can cost thousands of dollars, it is worth pursuing.