5 Reasons Michigan Property Insurance Claims May Be Denied
Waiting for an insurance payout only to receive a denial can be financially devastating. In Michigan, insurers must handle valid claims “promptly and in good faith,” yet carriers routinely reject or underpay for technical reasons. Below we unpack the five most frequent denial tactics we see and—more importantly—how Fabian, Sklar, King & Liss, P.C. turns “no” into paid claims for homeowners and businesses statewide. Bookmark this guide and schedule a free consultation before deadlines run out.
1. Late Notice or Delayed Filing
Most policies require prompt notice—often within 30–60 days. Miss the window and the carrier cites forfeiture and is a frequent reason Michigan Property Insurance Claims may be denied. Under certain circumstances, Michigan courts will excuse delay if the insurance company suffered no prejudice. Collect emails, texts, or repair invoices that prove you acted quickly; then let our property-insurance lawyers push back. We often reinstate “late” claims by arguing the insurer violated its own duty to request missing information under the Michigan Unfair Claims Practices Act (DIFS guidance).
2. Damage Blamed on an Excluded Peril
Policies exclude flood, earth movement, mold, and “wear & tear.” Insurers exploit ambiguity—labeling a sudden pipe burst “long-term leakage,” for instance. We hire engineers to pinpoint cause and challenge the carrier’s narrative. In one recent case, our experts proved storm-driven rain, not ground seepage, triggered the loss—forcing full payment plus 12% statutory interest under MCL 500.2006. If an exclusion truly applies, we still pursue every remaining benefit (code upgrades, debris removal) and advise on supplemental flood or sewer-backup endorsements.
3. “Insufficient Documentation” or Proof-of-Loss Errors
Carriers demand meticulous inventories, photos, and receipts. One missing signature can trigger a denial. Michigan law (R 500.2001 et seq.) obligates insurers to specify exactly what constitutes “satisfactory proof.” If they stay silent, courts excuse paperwork defects. Our team assembles line-item estimates that sync with insurer Xactimate templates, attaches high-resolution imagery, and uploads receipts to encrypted cloud folders—creating a bulletproof file the carrier can’t ignore. Need help gathering evidence? See our documentation guide.
4. Alleged Policy Lapse or Unpaid Premiums
Missed a payment? Insurers may cancel coverage—sometimes erroneously. Under Michigan’s “notice of cancellation” statute (MCL 500.2123) carriers must mail written notice at least 10 days before termination. We subpoena billing ledgers, bank proofs, and USPS tracking to show payments were made—or that cancellation notices never mailed. If possible, our attorneys negotiate reinstatement of your claim proceeds.
5. Insufficient Coverage or Policy Limits
Underinsurance surfaces after catastrophes: rebuilding costs outpace dwelling limits, or business-interruption caps run out. Insurers then cut checks at the limit and call it closed. We scrutinize underwriting files, square-foot calculations, and endorsements. Errors (e.g., misclassified occupancy) may give rise to an insurance agent errors and omission claim.
Michigan Statutes Favor Policyholders
Michigan penalizes slow or unfair claim handling: insurers owe 12% interest on overdue payments (MCL 500.2006) and face DIFS sanctions for bad-faith denials (DIFS consumer guide). Our litigation record—statewide in circuit and federal courts—shows insurers pay attention when we cite these statutes.
How Fabian, Sklar, King & Liss Turns Denials into Payments
Exclusively focused on first-party property claims since 1986, our firm has recovered tens of millions for Michigan homeowners, landlords, and businesses. We interpret dense policy language, deploy engineers and CPAs, and—when necessary—file suit to enforce coverage. Review our results and attorney bios:
Contact us for a free policy review before the insurer’s deadlines expire.
The Power of Early Legal Involvement
Engaging an attorney right after a loss – or even when a claim “feels off” – prevents waiver of rights and lost evidence. Insurers have full-time adjusters and lawyers; level the field with specialists who litigate property claims daily. Schedule your free consultation now and let us handle the paperwork, deadlines, and negotiations while you focus on rebuilding.
Your Claim, Our Mission
“Insurers routinely undervalue or deny valid claims. We document every loss, confront carrier tactics, and secure the compensation your policy promises.”
This article is for general information and does not constitute legal advice. Reading it does not create an attorney-client relationship. For guidance on your specific claim, consult a licensed attorney.