5 Helpful Tips To Avoid Fire Insurance Claims From Being Denied

2/22/2021 (Permalink)

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Learn why fire damage claims get denied

After your property is damaged by a tragedy such as a fire, the worst thing that can happen is finding out that your claim has been denied. There are several reasons that insurance agencies justifiably reject fire insurance claims. But that never means that all claim denials are justified.

A fire can occur to any business or home despite the location or precautions taken. The worst part is, one can never be fully prepared. If you have property insurance and are worried about a future fire situation, or if, unfortunately, you are already facing this and see no way out, then read on. This post will help!

Common reasons for a denied claim  

There are many common reasons why insurance agencies can deny claims for coverage associated with fire and smoke damage. While it may be disappointing to receive a rejected claim, the insurance provider can only reconsider their decision if their refusal of coverage has been taken because of an error on their part or because of a false allegation of fraud.

Let's look into the common reasons for the denial:

• Not filing the claim on time; missing the deadline stated in the policy.
• Lack of documentation and evidence of the fire loss.
• Filing a claim for the losses that are not included in your coverage.
• The coverage limit has been met or exceeded.
• Late or missing premium payments.
• Evidence of illegal activities.
• If the policyholder does not take any precautionary measures and deliberately leaves the property exposed to further loss.

How to avoid being denied

Some insurance providers can reject coverage claims or underpay for damage to policyholders, causing an unreasonable and unfair financial hardship on those who have filed valid claims. For those who are not aware of property claims' ins-and-outs, the entire procedure of filing a claim can be time-consuming and challenging. It can be beneficial for your settlement if you employ a professional to help file the claim, record damages, and negotiate with your insurance provider.

5 Tips to avoid being denied:

1. Notify the insurer immediately of any losses and keep in mind the time limitations needed to file a claim.
2. Pay premiums on time.
3. Know what the insurance policy protects & excludes and, if available, obtain sufficient coverage.
4. Take all the required steps after a loss to protect the property and minimize the damage.
5. Document all the property damage.

Reasons why a claim was denied

Every fire is different, and the fire department investigates each one to find the starting point. The fire department then sends a report to the insurance companies, and most insurance companies send investigators to inspect the situation as well. All of this must be done before filing a claim. However, not all the claims are paid in full; here are some explanations why:

Misrepresentation of property

You could jeopardize the whole argument by inflating the real worth of items or claiming that you have lost more than you can prove.

Arson

The police and the fire department can suspect arson if they can not find the hotspot. It is best to employ a professional insurance claim attorney to manage your claim if the insurance provider has convicted you of insurance fraud or arson.

Work done without inspections/permits.

The insurance provider will reject the claim if an electrical fault starts a fire in a house where the electrical work was not adequately approved.

What to do if your claim gets denied

When a claim is denied, the property owner will receive a letter detailing precisely why the insurance provider rejected the fire claim. 

• Review your denial letter; compare the information in this letter to the specifics of your insurance policy's coverage.
• Since the claim is rejected, the burden of evidence is on the property owner; build a strong case that includes:

1. Proof of the loss in detail.
2. Policy evidence that indicates the loss should be compensated.
3. Supporting paperwork and facts.

SERVPRO knows fire damage claims 

In the industry, SERVPRO of North Fulton is a renowned company, and it has been serving clients north of the Atlanta perimeter since 1967. If you have suffered smoke and fire damage to your property and have claim problems, look no further. 

Our trained insurance damage professionals will support you by reviewing your claim and speak with your insurance adjuster on your behalf. We know what your adjuster is looking for and will provide an accurate xactimate estimate. 

SERVPRO understands the situations our clients are in. We believe that we must supply our customers with white glove services. Contact us today!