property insurance claim denial

You purchased homeowners’ insurance to protect your investment, and you trust that coverage to kick in when you need it most. But just because you file a claim doesn’t mean the insurance company will automatically approve your claim and give you a fair settlement. In fact, claim denials are common and can delay your ability to get your home fixed and back to its original condition. While working with a Michigan property insurance claims attorney is always a good idea, it’s still helpful to understand the most common reasons why insurance companies deny claims in the first place.

Not Filing Soon Enough

Under Michigan law, you have three years from the date of the incident to submit a claim to your insurance provider. If you miss the deadline or file after the deadline, your insurance company will typically deny the claim. This is because insurance providers expect you to file claims in a timely manner. Otherwise, they assume that you’re taking full responsibility for the cost of repairs. 

When in doubt, try to file your claim as quickly as possible. Make sure you and your loved ones are safe and call your insurance agent as soon as you’re able to do so. They’ll guide you through the claims process and help you keep things on track so you won’t have to worry about that three-year deadline.

Missing Payments on Your Insurance Premiums

If you miss an insurance premium payment or make one late, you could end up with lapsed coverage. During that period of non-payment, you may not have insurance on your home. If you file the claim when your insurance company effectively canceled your coverage, they’ll deny the claim. 

Consider paying for your insurance for the year in a single payment if you can. Often, insurance providers will reduce the total cost of your premiums if you pay upfront. If you can’t, consider enrolling in autopay so you won’t have to worry about missing a payment or making a payment late.

Not Providing Enough Documentation

With every claim you file, you’ll want to submit detailed evidence of the damage. This means taking pictures, writing down descriptions of the accident and the damage, and providing as much information as you can to your insurance provider. If you don’t submit enough evidence, the insurance provider may deny your claim. 

If you can, take pictures of as much of the damage as possible, and submit those images with your claim. Avoid making permanent repairs before the insurance company determines your settlement, too. This way, the insurance adjuster will be able to see the damage in person and can more easily assess the severity of the damage to help you get a better settlement.

Submitting Claims for Uncovered Damage

Homeowners’ insurance policies cover a lot of common hazards, but they don’t cover everything. Most policies will have a detailed exclusions list that you’ll want to read up on before you purchase the coverage. If you submit a claim for a type of damage or incident that’s not covered under your policy, the insurance provider may deny your claim.

Most Claim Denials Can Be Appealed

Dealing with a claim denial is frustrating, but many denials can be appealed with the help of a Michigan property insurance claims attorney. They’ll represent your interests with the insurance provider and get them to re-evaluate your claim. 

If the insurance provider approves your claim after your appeal, they’ll offer you a settlement to help you cover the cost of repairs or replacements.

Let Your Michigan Property Insurance Claims Attorneys Help

If your claim has been denied or the settlement amount you were offered was too low, don’t give up. Contact a Michigan property insurance claims attorney at Fabian, Sklar, King & Liss. Our team will represent your interests and help you negotiate with your insurance provider for a fair settlement.