What to Do If Renters Insurance Company Denies Your Claim

Why Renter’s Insurance is Important

Just like home and business owners, renters should buy insurance to ensure that their belongings can be replaced in case of unexpected events. Insurance also helps to defray medical costs and living expenses. Most policyholders expect that they will be protected from losses due to accidents and thefts. There will be occasions when insurance companies reject or deny claims.

Policyholders have the right to question and contest an insurance company’s refusal to pay. Check for and work with qualified attorneys who can help with the appeals process. Attorneys will go over the paperwork and also suggest documents needed to bolster an insurance claim. It is always good to work with a lawyer so that they can negotiate settlements with insurance carriers and also file a lawsuit if the circumstances warrant it.

Common Reasons For Denial of Claims

Insurance companies usually inform claimants by mail whether their claims will be paid off or if it is rejected. They will also state the reason(s) for which the claim was turned down and refer to sections in the policy which supports their decision. If the reason is not clear cut to a policyholder, it becomes important for the homeowner to talk to the adjuster personally and get clarification.

Some of the reasons for denial are:

  • Lack of Coverage : There are different types of insurance policies for various disaster scenarios like flood, fire and other insurance. If damage to home and property was caused by something for which there was no coverage, the insurance carrier will not pay for it. Make sure to read the letter properly and that the assessment is accurate.
  • Loss and damage to property happened during a period when the coverage was not in effect.
  • Claims are also denied if a policyholder doesn’t fulfill conditions set forth in the policy. Reasons could be as simple as non-payment of insurance premiums or not taking precautions to prevent damage.

There will always be cases where the reasons for denial are not clear cut. Most insurance companies will take advantage of gray areas to not pay. In any case, it is always a good idea to contact a lawyer who is familiar with homeowner’s insurance cases and get the needed help.

Steps to Take After Insurance Claim is Denied

To contest a denied claim, renters should take the following steps:

  • Keeping accurate records of the claims process will help. Save important receipts, letters and any other correspondence exchanged with the insurance company during this time.
  • Get a copy of the policy and read it thoroughly. Look at the sections mentioned in the denial letter. If you don’t think it applies, take it up with the insurance company.
  • It is possible that the cause behind the incident was not communicated correctly to the insurance carrier. If this is the case, make sure to write to the insurance adjuster and explain the reasons. Make sure to be very specific and dispute the claim in writing.
  • If you feel that there are issues with the way the claim was handled, filing a complaint is an option.

Keep in mind that an insurance company has a specific timeframe in which they have to approve or turn down claims. If you as a homeowner feel that the delays are unreasonable, then you can take it up with the company directly or the concerned authorities. Make sure that disputes are made in writing so that there is a paper trail to establish your case.