Understanding Dwelling Coverage Customization Options On Your Home Insurance Policy | Claimsmate

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Top 5 Reasons Not to Handle Your Own Insurance Claim

For medium and large-sized insurance claims, you could leave money on the table by handling your own claim.

Here are the top 5 reasons not to handle your own insurance claim.

1) You Need to Handle Mountains of Confusing Paperwork

A major insurance claim involves seemingly endless paperwork.

Most insurers use this paperwork to create a clear paper trail, making it easy to track your claim from start to finish and verify all losses.

Other insurers, however, may use this paperwork to overwhelm policyholders, delay payouts, and make the claim much harder than it needs to be. They might design their paperwork to be confusing, and then overwhelm you with paperwork to deliberately weaken your resolve.

Some insurers know homeowners get so frustrated with paperwork and documentation that they will eventually accept a lower settlement.

Insurance paperwork is hard: you don’t just sign a form and send it back to your insurer; instead, you need to fill out forms accurately and with the right information to ensure you receive maximum payout for your claim.

Some of the paperwork required on a major insurance claim may include:

• Detailed building restoration estimates
• A complete inventory of home property, including the value of the property, how much you paid for it, brand, makes, models, and more
• Additional documentation to prove your claim

Do you know the number of coffee cups you have in your home? Do you know what you paid for your 10-year old couch? Do you have receipts for every high-value item in your home?

All of this documentation takes time. And, a single mistake could jeopardize your claim or leave you with thousands in lost compensation.

2) You Need to Spend Time Researching, Verifying, and Managing the Claim

A major insurance claim takes time. You need to spend time documenting the claim, researching repair and restoration options, comparing contractor quotes, and managing the loss from start to finish.

Even if you don’t have a full-time job, these hours can add up. They’re frustrating hours, too: you’re spending a significant amount of time looking up what each form means, for example, and how to best complete each document from your insurance company.

3) You Need Experience (Or Hours of Additional Research Time)

If you’re lucky, you’ll only deal with one or two major home insurance claims in your entire life.

You don’t want to have experience with major home insurance claims. It’s a bad thing, because it means you’ve suffered multiple serious losses (and likely pay higher home insurance premiums).

Most homeowners don’t have sufficient experience to handle a major insurance claim. Sure, you can research everything you need to, but it takes hours of additional time.

Unfortunately, your insurance company may take advantage of your lack of experience. They might offer a payout hundreds of dollars less than you are rightfully owed, for example, because they know you don’t know the difference.

4) You Don’t Know What to Claim, How Much to Claim, or When to Push Back Against Greedy Insurers

Most homeowners don’t know what damages are covered under their policy. They don’t know what damages are excluded, for example, and they don’t know how to maximize the value of their claim.

It’s not their fault: homeowners aren’t property insurance experts, and they’re not expected to be.

However, insurers might expect homeowners to push back against claims. They might initially offer a lowball amount, for example, because they expect that you may fight back.

If you’re handling your own claim instead of letting the professionals handle it, then you likely don’t know when and where to fight back, which could leave thousands of dollars in compensation on the table.

5) It’s Likely You’ll Get Paid Less

Studies show homeowners who hire public adjusters tend to get higher compensation than homeowners who manage their own insurance claim.

If you try to manage your own major insurance claim, you could get paid significantly less by your insurance company.

Some insurers take advantage of your inexperience and naivety, for example. Others don’t point out additional damages you can claim.

Remember: insurance companies aren’t charities; they’re for-profit businesses that typically want to close your claim as cheaply as legally possible.

Hire a Public Adjuster for Professional Insurance Claim Help

Most homeowners aren’t insurance experts.
It’s not your fault: most homeowners only go through one major claim in their entire lives.

Instead of risking tens of thousands of dollars, however, consider hiring a professional to help navigate your insurance claim.

A good public adjuster has years of experience handling hundreds of insurance claims. They know what information insurers need, and they know how to build your claim to secure the highest possible amount of compensation.

Plus, public adjusters work on contingency, which means you don’t pay until you accept your insurer’s final settlement, which could be 300% higher than the payout initially offered.

Don’t risk it: hire a public adjuster today for your major home or business insurance claim.

Article Here: Top 5 Reasons Not to Handle Your Own Insurance Claim

10 Tips for Dealing With Hurricane Damage Insurance Claims

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Insurers Use Managed Repair Clauses to Reduce Claim Payouts

Managed repair clauses could allow an insurer to take advantage of you, reducing the cost of claims and paying you less than you deserve. Today, we’re explaining everything you need to know about managed repair clauses and how they work.

How Managed Repair Clauses Work

Managed repair clauses give the insurance company greater say into who repairs your home.

Under a traditional insurance system, your insurance company pays money after a loss based on the estimated cost of repairing the damage.

If a fire causes $20,000 of damage to your kitchen, for example, then your insurer gives you $20,000, minus your deductible, and you repair your kitchen with the contractor of your choice.

Managed repair clauses work differently. With a managed repair clause, the insurance company has a “right to repair” the property and decide who performs repairs – and how those repairs are performed.

Why Managed Repair Clauses Are Bad for Homeowners

Managed repair clauses are not good for homeowners.

They take power away from homeowners during the repair process, putting more power in the hands of insurance companies who may only care about their bottom line.

Instead of making your own decisions about the repairs, you lose that power to the insurance company.

The insurance company takes full responsibility for the repair process, communicating directly with the contractor to complete repairs.

That may sound like a good thing, and many insurers claim it is a good thing. However, it adds significant risk to the home repair process, and it could lead – and has led – to many serious home repair issues.

Risks of Managed Repair Clauses

Some of the risks of managed repair clauses include:

• Substandard repairs
• Partial repairs or shortcuts (like resurfacing damaged materials instead of repairing or replacing damaged materials)
• Lack of control by the homeowner over how repairs and performed and by which contractor
• Lost time while the homeowner stays home to monitor repairs instead of enjoying quality repairs from a trusted contractor
• Unlawful repairs performed by unlicensed or inexperienced contractors (or contractors without permits)
• Lack of recourse for shoddy repairs or unsatisfactory repairs
• Long wait times for specific contractors, especially after a major disaster

Insurers Have Been Caught Exploiting Managed Repair Clauses for Profit

Insurers may claim managed repair clauses are good for homeowners, but they’ve been caught plenty of times exploiting these clauses for profit.

According to an ABC News report, insurers in Florida advertise managed repair clauses as a way to avoid fraud, yet many homeowners complain about problems with the managed repair process.

• One Florida homeowner watched his insurer’s recommended contractors repair his home, only to have the new flooring buckle within months of installation
• That same family found mold and structural problems in the area where repairs were performed; the insurer denies the issues are related to repairs, despite the issues only being found in the area of the home where the contractor performed repairs
• Other Florida homeowners have accused insurers and their contractor partners of short cutting repairs
• The problem has become so bad that one attorney is leading a lawsuit with ten families who blame managed repair clauses for shoddy repair work

In another famous case, a homeowner in Pensacola, Florida was unable to repair his home for seven months because of the insurer’s managed repair clause. That man’s insurer required him to use a specific contractor to repair his home, and that contractor was unavailable for seven months.

Managed Repair Clauses Could Help Avoid Fraud

Managed repair clauses aren’t always a bad thing. Some insurers use managed repair clauses to genuinely help homeowners avoid fraud.

After disaster strikes a region, contractors of all qualities may approach homeowners offering to perform repairs. Some contractors are unlicensed. Others are unqualified. Some offer to take over your claim. Some even offer to pay your deductible.

Many of these contractors are often not reputable, and they may not perform the necessary repairs on your home.

Managed repair clauses and right to repair clauses are designed to give the insurer greater control over which contractor repairs your home. In an ideal world, the insurer chooses a high-quality, trusted contractor with a proven track record of performing repairs. Read more about insurance company preferred contractors here.

In practice, unfortunately, the managed repair clause system has led to plenty of issues preventing homeowners from accessing the repairs they need.

Final Word on Managed Repair Clauses

A growing number of insurers, particularly insurers in Florida, use managed repair clauses to reduce payouts and control the repair process.

Remember: insurers are for-profit businesses dedicated to their bottom line. If they find a way to save money on insurance claims, they’ll likely take advantage.

Managed repair clauses may sound like a good idea. In practice, however, they’ve led to serious problems with repairs.

Check your insurance policy for a managed repair clause. Generally, it’s not a good idea to have a managed repair clause in your policy.

See More Here: Insurers Use Managed Repair Clauses to Reduce Claim Payouts

Does Home Insurance Cover Your Home-Based Business? You May Need Extra Coverage

According to the Small Business Association, more than half of all businesses in the United States are based in the owner’s home.

You may assume homeowners insurance covers your home-based business, but that’s not always the case.

Today, we’re explaining everything you need to know about how insurance covers your home-based business.

Some Policies Cover Home-Based Businesses, While Others Do Not

Some homeowners insurance policies cover home-based businesses, while others do not.

As Allstate explains, a standard homeowners insurance policy may provide limited coverage for business property stored in your home.

Even if your homeowners insurance policy does cover business property, your coverage limits may not be high enough.

According to the Insurance Information Institute, most homeowners insurance policies provide minimal coverage for business property at home.

Contact Your Insurer to Verify Home-Based Business Coverage

Home-based business coverage varies based on your policy and your provider. Some homeowners insurance policies cover home-based businesses, while others do not.

The best way to determine if your home insurance policy covers your home-based business is to contact your insurer and be honest about your home-based business possessions and how you use your office.

If you’re like most home-based business owners, then you use your office for more than just your business. You might use your computer to play video games, for example, or to chat with friends and family.

However, high-value business items or possessions used exclusively for business may not be covered under a standard homeowners insurance policy.

• Your insurer can explain if your current policy covers your business
• You may need to add coverage to your policy (say, for a few extra dollars per month)
• Some insurers offer combined policies to cover both home and business property; others require you to buy a separate policy

If you have high-value items you use for business, then you can’t risk losing those items because of an insurance misunderstanding. Contact your insurer to verify if your policy covers your home-based business.

Are Your Coverage Limits High Enough?

A standard homeowners insurance policy is designed to cover your property and all of the possessions inside that property.

You might buy a $400,000 homeowners insurance policy, for example, to cover roughly $400,000 in home value and possessions.

If you have a home-based business, however, then your possessions could exceed this limit.

• Insurers use formulas to determine the approximate value of items in your home based on square footage, then create a policy based on these calculations
• If you have a home-based business with high-end equipment, computers, tools, and other materials, then the value of your possessions could exceed your policy’s coverage
• Someone with expensive business equipment at home may be seriously under-insured under their current policy

If your home-based business consists of a computer and a desk, then you may be okay. A standard insurance policy covers these items.

However, if your home-based business has high-end equipment and tools, copiers and printers, and other specialized items, then you may need extra coverage beyond an ordinary homeowners insurance policy.

Protect Business Records and Data

If your house burned to the ground today, would your business records and customer data survive?

Some home-based business owners store records in filing cabinets. Others store records on computers.

If your data is stored on the cloud, then you’re okay. You can access the data from anywhere even if your home burns down.

However, if your data is stored in a single place – like the hard drive of a computer in your home or a filing cabinet in your office – then you could lose this data after a disaster.

Insurance is unlikely to cover any business records or customer data you lose during a covered event.

You Need Liability Insurance If Employees or Customers Visit Your Home

A standard homeowners insurance policy includes liability coverage. If someone comes to your home, falls down, and injures themselves, then your insurance will cover any lawsuits or damages that arise.

However, a standard homeowners insurance policy only covers guests in your home – not clients, employees, or customers.

If customers or employees visit your home for business purposes, then you need to adjust your insurance policy and add commercial coverage. If a customer slips and falls, they could sue you for damages – and your homeowners insurance company will decline your claim, forcing you to pay for damages out of pocket.

Homeowners Insurance Does Not Cover Property Stored Away from Home

You may keep some home-based business property away from your home.

In this situation, a standard homeowners insurance policy will not cover this property.

However, there are exceptions.

Most homeowners insurance policies cover items stolen from your vehicle, for example. If someone steals your laptop from your car, then you may be able to make a claim under your homeowners insurance policy.

Add an Endorsement to your Policy for High-Value Items

You may need to add an endorsement to your policy for high-value items, including both personal and business items.

If you have a $5,000 engagement ring in your home, for example, then you may need to buy an endorsement for that ring.

Similarly, if you have a commercial printer priced at $1,200, then that printer may not be covered. You need to buy an endorsement to cover the printer.

A standard homeowners insurance policy may cover possessions up to $500 to $1,000. Beyond that amount, you may need to buy an endorsement. Otherwise, your high-value items might not be covered.

How Homeowners Insurance Covers Home-Based Business Losses

A standard homeowners insurance policy provides basic coverage for home-based business property. If your policy covers home-based business property, then claims work similar to ordinary insurance claims.

1. You experience a covered loss, like a house fire, burst pipe, tornado damage, or storm damage
2. Your insurance company sends an adjuster to your property to inspect the damage, verify coverage, and calculate the estimated amount of the loss
3. You pay your deductible, and your insurance covers all remaining costs of restoring your property, up to the limits of your policy; a standard policy may provide basic coverage for home-based business property

Contact your insurer to begin the claim process. The sooner you contact your insurer after a loss, the sooner you can get the compensation you deserve.

Types of Policies for Your Home-Based Business

Different home-based businesses have different insurance needs. Depending on the nature of your home-based business, you may want to buy one or more of the following insurance options:

• Business income coverage
• Liability insurance
• Workers’ compensation coverage
• Business property or inventory coverage
• Specialized business property coverage

If your home-based business earns a certain amount of revenue, then you may be ineligible for policies listed above; instead, you may need to buy a business owners policy (BOP). A business owners policy is a combination of multiple coverages, including liability insurance, property coverage, and other coverages for your home-based business.

Talk to your insurer and explain the nature of your business, and they can help you select the optimal products for your home-based business insurance needs.

Final Word On Home Business Coverage

Many business owners have lost property because they assume their insurance covers home-based business property – when it really does not.

Contact your insurer to verify coverage. You may need to add extra coverage to your policy to ensure your business stays protected.

Don’t wait until it’s too late. Verify coverage today to protect your home-based business and your property.

Article Here: Does Home Insurance Cover Your Home-Based Business? You May Need Extra Coverage

How to Protect your Home from Summer Storms And Avoid Denied Claims

Insurers deny and reduce claims regularly for improper maintenance. Some insurers deny claims, for example, because the damage already existed. Others pay you thousands less than you deserve because you failed to abide by meticulous maintenance standards.

With summer storms approaching, here are some of the best ways to protect your home – and make sure your insurance claim goes smoothly.

Review Insurance Coverage

Many homeowners don’t fully understand what home insurance covers – and what it excludes – until it’s too late.

There’s no better time to review insurance coverage than today. Check your coverage, verify your limits, and ensure you have sufficient insurance for everything in your home.

Here are some tips for reviewing insurance coverage before summer storm season:

• Review your home insurance policy limits and make sure your policy has high enough coverage for your home and all possessions inside your home
• Add endorsements for any high-value items (typically items worth more than $500); otherwise, your insurer may not reimburse you for these damages
• Check your car insurance policy to verify you have comprehensive coverage; otherwise, you may not be protected against hail damage and other types of storm damage (car damage does not fall under a home insurance claim, even if the vehicle is parked at home)
• Check exclusions to verify you’re covered against thunderstorms, hail damage, windstorm damage, hurricane damage, tornado damage, and other events; some insurers exclude certain severe weather events, especially if you live in an area where those weather events are common
• Decide if you need flood insurance; major insurers do not offer flood insurance, but insurers partner with FEMA to provide flood insurance to homeowners in low-lying or flood-prone areas, and it may be a smart investment to protect your home all summer long

Install a Lightning Rod

Certain areas are more prone to thunderstorms than others. If you live in a thunderstorm-prone area, then a lightning rod may be a smart investment.

Homeowners in the United States file approximately 100,000 lightning strike-related insurance claims each year. Lightning strikes cause serious damage to homes, electrical systems, and electronics.

A lightning rod prevents a lightning strike from frying your home’s electrical circuitry and damaging electronics.

Buy a Surge Protector

If you don’t want to install a lightning rod, then consider installing a surge protector in your home.

There are surge protector power bars that protect specific electronics. However, these don’t protect your home’s electrical wiring, nor do they protect electronics that are not plugged into the surge protector.

To protect your home and its electronics, ask an electrician about installing a surge protector.

Whether using a lightning rod or a surge protector, a good lightning protection system can help mitigate power surges and avoid costly damage.

Fix Your Roof and Check It Regularly

Your roof is one of the most likely parts of your home to get damaged in a summer storm.

However, if your roof is poorly maintained or has existing damage, then your insurer could deny your storm damage insurance claim.

Fix any problems with your roof and your gutters. Repair missing shingles or tiles. Make sure your chimney has no cracks, and check the flashing to ensure there are no leaks.

Clean Your Gutters

As a homeowner, you have a duty to maintain your gutters. If your gutters are filled with junk, then they can’t do their job correctly during the next storm.

Check your gutters and clean them regularly.

Even if you’ve cleaned your gutters, it’s important to check their performance in a rainstorm. Grab an umbrella and walk outside (if safe to do so) during the next rainstorm, then check to see how your gutters are draining.

Good gutters will funnel water away from your home without overflowing.

Look for rust, cracks, and other damage to your gutters. Repair this damage and test your gutters with a hose to make sure they’re draining correctly.

Check Seals Around Doors and Windows

The caulking around your doors and windows needs to be intact to protect against summer storms.

Check seals and caulking around all entryways to your home, including:

• Doors
• Windows
• Holes where wires and pipes enter your home
• Any other access points between your home and the outside world

Install Storm Shutters to Save up to 25% on Homeowners Insurance

People in storm-prone areas often invest in storm shutters. In fact, some insurers offer discounts of 25% for installing storm shutters.

Storm shutters give your home an extra layer of sturdy protection in a storm. They can help you avoid making a home insurance claim – or limit damage to your home from the next storm. Even if you never face a serious storm, you can save hundreds per year on home insurance with storm shutters.

Maintain, Trim, and Monitor Trees Around Your Property

You have a duty to maintain trees around your property. Failing to maintain trees, trim trees, and remove dead trees could lead to insurance claim denial.

In a storm, dead branches become projectiles and damage your home. The larger the branch, the greater the damage.

Hire an arborist to check trees around your property. Remove any dead branches within 10 to 15 feet of your home, or any branches and trees that could land on your home during a storm.

Good Maintenance Today Could Save Your Insurance Claim

In many cases, good maintenance is the difference between a denied and approved insurance claim.

Take steps to maintain your property today – before one summer storm means you’re too late.

Originally Published Here: How to Protect your Home from Summer Storms And Avoid Denied Claims

10 Tips for Dealing With Hurricane Damage Insurance Claims

You buy home insurance to protect your home. However, a standard policy could leave you with much less compensation than you expect after a loss – even if you have a good insurance company.

It’s okay that you’re not a hurricane insurance claim expect. Here are 10 tips to help.

Home Insurance Doesn’t Cover Flooding

A significant amount of hurricane damage occurs from flooding. However, a standard home insurance policy does not cover flooding.

A standard home insurance policy covers:

• Wind damage
• Wind-driven rain (water that enters your home because of wind)
• Water damage caused by leaks, holes, roof damage, broken windows, and wall damage

However, home insurance does not cover damage caused by water rising up into your home. As floodwaters rise after a hurricane, it could leave your basement and first floor soaked with water. Unfortunately, home insurance doesn’t cover this damage.

With most hurricanes, including Hurricane Harvey in Houston, the most significant damage occurred due to flooding. Homeowners were only covered if they had flood insurance.

You Can Buy Flood Insurance From the Government or Specialty Insurers

A standard home insurance policy does not cover damage caused by flooding after a hurricane (or any other type of flooding).

However, you can buy specialty flood insurance from the National Flood Insurance program or from a specialty insurer.

Because insurers refused to cover homes in flood-prone areas, the government stepped in. Today, homeowners in flood-prone areas can buy coverage through FEMA’s National Flood Insurance Program.

NFIP coverage works similar to a standard insurance policy: if rising floodwaters damage your home, then you make a claim.

Auto Insurance Covers Vehicle Damage After Flooding

All vehicle damage after a loss is covered by your auto insurance policy – not your home insurance policy.

Even if your vehicle was parked in your garage during a hurricane and suffered water damage, you make a claim through your auto insurance policy.

A standard auto insurance policy with comprehensive coverage (part of a full coverage plan) covers water damage, fire damage, and other environmental damage.

Although a home insurance policy does not cover flood damage, a car insurance policy with comprehensive coverage will come with flood coverage.

Whether your car is damaged by a flood or wind, your insurer will cover the cost of repairing or replacing your vehicle, minus your deductible.

Take Photos and Videos Immediately After a Loss

Once it’s safe, take photos or videos of the hurricane damage immediately after the loss.

Your insurance company requires you to implement basic steps to protect your home after a hurricane. You must put up tarps if safe to do so, for example, to prevent more water from entering your home. You cannot simply let water pour into your home after a hurricane tore a hole in your roof and expect more compensation for damage that could have been prevented.

The more photos and videos you have of the damages, the easier your claim will be.

Insurance Covers Certain Living Expenses After a Hurricane

Many homeowners are forced to flee their homes after a hurricane. If your home is damaged and unlivable after a hurricane, then your insurance should cover hotels, meals, and other living expenses after the loss.

A standard home insurance policy covers additional living expenses (ALE). If your home burns down and you need a place to stay, your home insurance policy covers the cost of getting a hotel, buying replacement clothing, and dining out, among other emergency expenses.

After a hurricane damages your home, track your receipts and expenses. Your insurer may reimburse you for everything.

Hurricane Claims May Have Higher Deductibles

In recent years, insurers have quietly added higher deductibles for certain types of severe weather events.

Instead of paying a deductible of $1,000 to $2,000 for hurricane damage, you might pay a deductible based on a percentage – typically 5% to 10% of the damage.

If a hurricane causes $50,000 of damage to your home, for example, then your insurer may require a deductible of $2,500 to $5,000 to complete the claim.

Check your insurance policy to verify your deductible requirements. Many policies have higher deductibles for wind damage, which is why hurricane claims can have particularly high deductibles.

You May Receive Additional Compensation from the Government

The state and federal government and non-profit organizations may provide additional assistance to hurricane-struck regions – particularly after a major disaster.

Just type your address into DisasterAssistance.gov to see if you qualify for emergency housing, medical aid, or financial assistance.
This money is designed to help people like you who lost property or injured themselves in an emergency.

You May Be Eligible for a Low-Interest SBA Loan to Rebuild or Repair Your Property

After an emergency, the United States Small Business Administration (SBA) provides low-interest loans to help people repair or replace damaged property.

You can request these loans even if you’re not a business owner. The loans are available to:

• Homeowners
• Renters
• Small businesses
• Non-profit organizations

You Can’t Adjust Insurance Coverage After a Hurricane is Named

Insurance companies prevent you from adjusting your policy when a disaster is approaching.

Otherwise, many homeowners would increase coverage when hurricanes approach, then reduce coverage at other times of the year.

For hurricanes, most insurers prevent you from adjusting your policy, changing your coverage, or adding new coverage after a hurricane has been named. You can still change your policy, but changes won’t take effect until after the hurricane strikes.

Understand How Insurance Covers Fallen Trees

Hurricanes can leave many fallen trees in their wake. Fallen tree insurance claims can seem messy, but they’re straightforward:

• If a tree falls onto your property, then you file a claim with your own insurance company, regardless of whether it was your own tree or a neighbor’s tree
• If a tree falls from your property into your neighbor’s yard, then your neighbor files a claim with their own insurance company
• Insurance should cover the cost of repairing any damage caused by a fallen tree, up to the limits of your policy
• If a fallen tree did not damage anything, then insurance could still pay $500 to $1,000 to cleanup the tree (or, some insurers pay nothing)

Final Word On Hurricane Insurance Claims

Homeowners aren’t hurricane claim experts – and that’s okay.

By researching your policy, verifying your coverage, and understanding your options before a hurricane strikes, you can protect your biggest investment from a serious natural disaster.

For expert hurricane insurance claim assistance, contact ClaimsMate today and get a free consultation with a public adjuster.

ClaimsMate’s public adjusters have firsthand experience solving tricky hurricane insurance claims for clients, helping clients maximize compensation.

See More Here: 10 Tips for Dealing With Hurricane Damage Insurance Claims

What To Do When Your Home Insurance Claim Is Denied

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How Home Insurance Covers Natural Disasters

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What to Do When Your Home Insurance Claim is Denied

Has an insurance company denied your claim? What should you do when an insurance claim is denied? Keep reading to discover the steps you should take after insurance claim denial.

1. Understand The Reason For Denial

Insurers deny claims frequently.

Sometimes, they deny claims for good reasons. The policyholder committed insurance fraud, for example, or deliberately damaged the property.

In other cases, insurers deny claims because they’re greedy. They use hidden policy language and engineering reports to intimidate policyholders into accepting a lower-than-expected payout.

Your insurer must provide a reason the claim was denied. Make sure you understand the reason for your denied claim. Then, you can proceed with the next steps.

2. Review Your Policy

In many cases, homeowners don’t fully understand their policy until after a claim has been denied.

Start by reviewing your policy. Your insurance company may have referenced specific parts of your policy when denying your claim. Review those parts thoroughly.

Approach your policy like you were the insurance adjuster looking to deny your claim. How would you interpret the policy in the insurer’s favor? That’s how insurance companies might approach your policy – and why they deny claims every day.

• Look for specific terms in the policy the insurance company is referencing when denying your claim
• Check specific coverages, deductibles, and limits to ensure you know how much is covered
• Look for exclusions, including specific incidents or types of damage your insurer may not cover

3. File An Appeal

If you’ve reviewed your claim and your policy and you’re still unsure about the denial, then file an appeal.

You have the right to appeal your insurance claim. To appeal your claim, you’ll need to collect evidence supporting the reason you believe your claim should be overturned, including:

• All relevant information about your claim and the resulting damages, including photos and videos of the damages, the date and times at which the damages occurred, receipts for damaged items, and other supporting evidence of your loss
• An estimate or statement from an independent appraiser (if the value of an item is disputed) or an estimate from an independent contractor (if the value of repairs is disputed)
• Evidence proving you performed due maintenance on your house regularly and were not negligent
• Any other evidence refuting the insurance company’s reason for denying your claim

If the insurer denied your claim unfairly, then you may be able to overturn the denied claim by providing the evidence above.

4. Hire A Public Adjuster Or Other Professional

If none of the above steps overturned your denied insurance claim, then it’s time to hire a professional.

Typically, homeowners hire public adjusters for disputed amounts greater than $10,000.

Public adjusters are are typically paid by contingency, which means they don’t charge clients anything until the final settlement with your insurer.

A public adjuster manages your claim from start to finish, analyzes your claim and the damages, and negotiates with the insurance company with your best interests.

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The goal of a public adjuster is simple: to ensure you receive every penny legally owed to you according to your insurance contract.

If the public adjuster is unable to help with your case, then you may want to approach an insurance attorney in your area – especially if it’s a high-value claim with a large amount of disputed money. Hiring an attorney can be expensive, but it’s one final way to overturn your denied claim.

5. File A Formal Complaint

The insurance industry is regulated by your state’s Department of Insurance.

If you’re unsatisfied with your insurance company, or if your insurer denied your claim without due cause, then consider filing a formal complaint to your state’s insurance commissioner.

Insurers have an obligation to operate in good faith. When insurers break that obligation, they are violating state insurance law. Consider filing a formal complaint against your insurer if you’re unsatisfied.

Why Insurers Deny Claims

Insurers deny claims for many different reasons.

Some of the reasons insurers deny claims include:

• Misrepresentation (i.e. lying or misrepresenting certain facts to your insurance company)
• Non-payment of premium or late premium payments
• Missed filing deadline
• Insufficient documentation and evidence
• Damage from an excluded cause
• Damage to undisclosed improvements (like a new kitchen renovation)
• Neglect or lack of maintenance
• Deliberate or intentional damages (like arson)

When insurers deny claims they should provide a reason for that claim denial. If you disagree with the insurance company and think your claim was wrongfully denied, you may be able to overturn a denied claim by providing the right evidence or getting help from a licensed insurance claim professional.

Schedule A Free Case Review

ClaimsMate provides free case reviews. Contact ClaimsMate today for a no-obligations consultation.

A ClaimsMate public adjuster can analyze your claim, determine why your claim was denied, and use proven strategies to overturn that denied claim.

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Additional Resources For Insurance Claim Denials

For more information and assistance with your specific claim denial situation, see the following resources below:

• How To Dispute A Homeowners Claim Denial
• Filing A Complaint Against The Insurance Company
• Appraisals, Mediation & Arbitration For Claim Disputes
• Why Insurance Companies Deny Fire Claims
• Top Sources Property Damage Claim Help
• Insurance Claim FAQs

Source Here: What to Do When Your Home Insurance Claim is Denied

7 Things Homeowners Insurance May Not Cover

There are some things homeowners insurance does not cover.

Many homeowners are surprised flood damage isn’t covered by a standard home insurance policy, for example. Others are surprised to see insurers deny a claim because of an “Act of God.”

By educating yourself on what homeowners insurance covers and does not cover upfront, you can maximize the value of your home insurance policy.

Here are 7 things homeowners insurance does not typically cover.

Bugs, Pests, and Rodents

Bugs, pests, and rodents can cause thousands of dollars of damage to your home. Unfortunately, your insurer may not cover this damage.

Home insurance companies treat pest infestations as a home maintenance issue.

If you have a pest infestation that has caused significant damage to your home, then the insurer considers it your fault: you should have maintained your home and prevented the pests from spreading.
That could mean missing out in significant compensation for damage caused by:

• Wasps
• Rats and mice
• Termites
• Squirrels
• Birds
• Other pests, bugs, and rodents

You can avoid significant pest-related damages with good home maintenance and regular home checkups. However, if you leave your house empty for long stretches, then pests could easily cause significant damage – and your insurer won’t cover it.

How to Get Covered: Maintain your home and check for pest damage regularly. If away from your home for a long period, have a professional check your home regularly for pest-related damage.

Acts of God

A standard home insurance policy will not cover floods, earthquakes, and other significant natural disasters.

If a flood destroys your home, then you may be forced to pay to repair damage (or rebuild your home) out of pocket – assuming you didn’t buy secondary flood insurance from FEMA.
Standard home insurance policies have exceptions for “Acts of God.” It’s a catch-all phrase that includes:

• Earthquakes
• Floods
• Tornadoes and hurricanes (may be excluded if you live in a region where tornadoes and hurricanes are common)
• Other natural disasters that cause damage

You can get coverage for these issues, but you need to pay extra.

Homeowners living in a flood-prone region, for example, can buy flood insurance through FEMA. Or, your insurer may offer additional tornado and hurricane coverage if you live in the southeastern United States.

Even if your policy does cover these items, you may have a high deductible. Some insurers now charge $5,000 or $10,000 deductibles, for example, for wind and storm damage. That means it may not be worth it to make a claim for most minor storm damage. Read your policy carefully to ensure your home insurance policy matches your needs.

How to Get Covered: Check your insurance policy to verify coverage or lack of coverage. Buy flood insurance through FEMA. Buy earthquake, tornado, hurricane, and other natural disaster insurance through your insurer (it’s typically available as an add-on in disaster-prone regions). Check your policy’s deductibles to ensure it’s within the range you expect.

The Full Cost of Replacing your Roof

It costs anywhere from $5,000 to $50,000 to replace a roof, depending on the size of your home and the material used.

Unfortunately, insurance may not cover the full cost of repairing your roof in all situations.

Most home insurance companies now depreciate roofs. That means your insurance company pays you less money based on the age of your roof.

If a windstorm destroys your 15-year old roof, your insurance may only pay you $500 for the roof, and you now need to spend $10,000 on a new roof.

Check your policy carefully to ensure you have the roof coverage you need.

How to Get Covered: Maintain your roof regularly. Check your policy to make sure you understand your roof coverage. Check your roof for damage after hailstorms and windstorms. Or, have professionals check for damages.

The Cost of Rebuilding your Home

If your house is underinsured, then your insurer will not cover the full cost of rebuilding your home.

According to a recent industry survey, nearly 60% of homes in the United States are under-insured by at least 18%.

If a fire destroys your home, for example, then you might receive only a fraction of the compensation you need to rebuild your home.

Your insurer only needs to compensate you up to the limits of your policy. If you have a $400,000 policy for your $500,000 home, then your insurer still only provides $400,000 of compensation after a total loss.

Many homeowners are underinsured because they’ve made recent upgrades or repairs. Renovating your home could add significant value. If you didn’t update your insurance to match, then you may be underinsured, which means your insurer won’t cover the full cost of rebuilding.

How to Get Covered: Check your home insurance policy regularly to ensure it matches the full value of your home, including any upgrades or repairs you have made. Check building costs in your area. Consider getting a replacement value policy instead of an actual cash value policy for added compensation after a loss.

Service Lines

Insurance policies cover your house and most things inside your house. However, they don’t cover service lines coming into your home.

Your insurance policy covers the pipes inside your home, including leaking and burst pipes.

However, if a service line leaks or bursts, then it can cause significant damage to your lawn that isn’t covered by insurance.

Some policies do cover service lines. Other policies let you add service line coverage.

If you live in a condo or apartment, then service line coverage isn’t important. However, it’s more important for single-family homes, and you may want to check your policy for service line coverage.

It’s also important to check the condition of current service lines before buying a home. Ask for detailed inspections of sewage lines and drainage systems before you buy. If you detect damage before a sale, the seller may be required to fix this damage before closing, which could save you thousands of dollars.

How to Get Covered: Check for service line damage before you buy a home. Add service line coverage to your home insurance policy if concerned about potential costs.

Damage Resulting From Faulty Smoke Alarms and Other Safety Systems

You buy smoke alarms to alert you of a fire. If your smoke alarm malfunctions, however, then you still expect your insurer to cover the damages.

Unfortunately, that may not be the case: insurers may deny claims due to:

• Faulty sprinklers
• Missing smoke detectors
• Smoke detectors with dead batteries or no batteries

You have a responsibility to maintain your home and all appropriate safety systems. If you failed to maintain your home’s safety systems, then your insurer could deny your claim.

Similarly, homeowners insurance companies may deny claims if you have certain safety feature discounts. If you asked for a hurricane-proof door and window discount, for example, without correctly installing hurricane-proof doors or windows, then your insurer could deny future wind damage insurance claims.

How to Get Covered: Maintain home safety features to avoid future claim denials. Check safety systems regularly. Use licensed professionals to install home safety features.

Break-Ins Caused by Faulty Security Systems

Just like homeowners insurance doesn’t cover damage caused by faulty smoke alarms and other safety systems, it also doesn’t cover break-ins caused by faulty security systems.

If you received a 15% discount on homeowners insurance for having a home security system, for example, then you’re expected to maintain that system throughout your policy.

If you failed to maintain your home security system, or if you disabled your security system and someone broke in, then your insurer could deny your claim.

How to Get Covered: Maintain your home security system, set it when you leave the house, and check it regularly – especially if your home insurance company has given you a home security system discount.

See More Here: 7 Things Homeowners Insurance May Not Cover

Does Homeowners Insurance Go Up After a Claim?

Keep reading to discover everything you need to know about how homeowners insurance premiums go up after a claim.

Homeowners Insurance Premiums May Increase Each Time You Make a Claim

Every time you file a homeowners insurance claim, your insurer is likely to increase your premiums.

Insurance is all about risk. If you have had homeowners insurance for 30 years without making a claim, then your insurer likely considers you a low-risk policyholder.

However, if you’ve had homeowners insurance for 10 years and have made 3 major insurance claims, then your insurer probably considers you a medium-risk or high-risk homeowner. Whether it’s your fault or not, you’ve had multiple major claims that have cost your insurer thousands of dollars.

You should expect to pay higher premiums for around 5 years after a claim.

How Much More Will I Pay?

Homeowners insurance premiums typically rise 15% to 35% after making a single claim.

If you make a second claim within a 5 year period, your premiums could rise another 60%.

According to the Insurance Information Institute, the average homeowner in the United States pays $1,249 per year for homeowners insurance.

You’ll pay higher or lower premiums based on things like:

• Your location
• Natural disaster risk in your area
• Your history of claims
• The value of your home and your possessions
• Coverage options, including any additional coverages you may have purchased
• Coverage limits

The most important factor in home insurance premiums is risk. Insurers consider how likely you are to make a claim.

The Severity of Each Claim Matters

Insurers don’t just consider the number of claims you have made; they also consider the severity of each claim.

If you made two claims for $3,000 in fire damage because of two small kitchen fires, for example, then your insurer will treat you differently than if you burned down your $300,000 home twice.

Insurers consider things like:

• Claim history
• Claim type
• Claim amount

Insurers treat fires more seriously than weather-related claims, for example. Someone with two house fires in a 5 year span is a high-risk person to insure, while someone with two tornado insurance claims in a 5 year span may have bad luck.

Home Insurance Premiums Rise Nearly Every Year

According to the III, homeowners insurance premiums rise around 3% each year.

However, homeowners insurance premiums may have risen even higher in recent years because of inflation.

Inflation leads to higher-value homes, more expensive home repairs, and more expensive material costs.

As inflation causes prices to rise, insurers need to raise premiums to compensate.

Although the average homeowner paid $1,249 for home insurance in 2018, that number could be closer to $1,500 today.

It’s not just inflation: bad weather is also causing insurance premiums to rise. As severe weather events become more common, insurers are raising rates to compensate.

Homeowners insurance companies may also raise rates because of rising theft or crime rates in your area. If the likelihood of a burglary has increased, for example, then your homeowners insurance company may raise your rates.

Some Claims Raise Premiums Higher than Others

Some types of claims are more likely to raise insurance premiums than others.

• A single fire damage insurance claim, for example, will usually raise premiums by 25% to 35%
• Insurers are generally less harsh with weather-related claims; if you make a claim for weather damage, then your premiums may only rise 10% to 20%
• Theft, liability, and water damage claims are some of the worst claims for higher insurance premiums; you might expect to pay 20% to 30% higher insurance premiums after a theft, liability, or water damage claim
• Making a second claim for fire, theft, liability, or water damage within a 5 year period could cause rates to rise 50% to 60%
• Making a second claim for weather-related damage within 5 years may only cause premiums to rise 20% to 30%

How Do Insurers Check Your Claims Record?

When buying a new homeowners insurance policy, the insurer may ask about your claims history. How does the insurer verify your claims history? Can an insurer really check your previous fire damage insurance claims in a different state?

Yes, insurers can and do check your claims history.

Insurers check your claims history using the Comprehensive Loss Underwriting Exchange (CLUE) database.

CLUE is a nationwide registry of claims operated by LexisNexis, a consumer reporting agency. CLUE provides insurers with your previous five years of insurance claim history.

Whether you filed a claim in a different state or in your current state, it will appear on your CLUE record – as long as it occurred within the past five years.

If you’re unsure whether or not a claim appears on your record, request a copy of your CLUE report from LexisNexis.

When to Pay for a Claim Out of Pocket

You’ll likely pay higher insurance premiums after a claim. That’s why it may not always be in your best interest to file a claim. Instead, you may want to pay out of pocket.

When to file a claim:

• If the cost of repair far exceeds your deductible, then you may want to file a claim. If it’s going to cost $10,000 to repair your damaged kitchen after a fire, for example, and your deductible is $1,000, then it might be in your best interest to file a claim.
• You would also likely want to file a claim for any other significant damages or complete losses, regardless of your deductible. If your house burns down, or if a tornado destroyed significant parts of your home, then it’s almost always going to be in your best interest to file a home insurance claim.

Remember: insurance exists to protect you against unexpected events. Although you’ll pay higher rates after a loss, your insurer is still obligated to pay full compensation for your loss.

When not to file a claim:

• When the cost of repairs and replacements is close to your deductible, it may not be worth it to file a claim. If someone broke your living room window, for example, and it will cost $1,200 to repair the window, then it may not be worth making a home insurance claim. If your deductible is $1,000 and your premiums will rise 20% to 30% after a claim, then it makes a lot of sense to cover the repair by paying out of pocket.
• If you’ve made a claim in the last 5 years, you may want to pay out of pocket for the next claim, especially if it’s minor. Making a single claim can raise premiums by 15% to 35%. However, making a second claim could raise premiums another 50% to 60%. In this situation, you may be better paying out of pocket even for costlier claims.
• If you’ve made 2 or more claims in the last 5 years, then it may not be in your best interest to make a claim. If you have multiple major home insurance claims in a short period, then your insurer could decline to renew your policy. That may mean you need to buy insurance from a high-risk provider.

Final Word: Do the Math When Facing Higher Premiums

Overall, you need to do the math.

Is it worth making a claim today and paying higher insurance claims in the future? Or am I better paying out of pocket and avoiding higher premiums?

It’s expected for Insurers to raise rates after a loss, and it may or may not be in your best interest to file a homeowners insurance claim.

Article Source Here: Does Homeowners Insurance Go Up After a Claim?

How Increasing Wildfires and Climate Change Are Affecting Home Insurance Claims & Coverage

In fact, some homeowners struggle to find home insurance because of wildfire risk. Fewer home insurance companies are willing to insure high-value homes in wildfire-prone areas, for example.

The December 2021 fire in Broomfield, Colorado burned 600 homes. The fire forced the complete evacuation of the towns of Superior and Louisville.

Meanwhile, wildfires that used to only occur during the hot and dry summer months are now occurring at all times of year. The governor of Texas declared a state of disaster in March 2022 because of wildfires in North Texas, for example and wildfires occur in California every month of the year.

As the risk of wildfires increases due to climate change, homeowners – and home insurance companies – are struggling to maintain good insurance.

Insurers Are Cancelling Policies in Wildfire-Prone Areas

You buy home insurance to protect you from unexpected events. Unfortunately, your insurance company could cancel your policy at any time due to excessive risk.

• As reported by Pew, one homeowner in Colorado got an unpleasant surprise from his insurance company. After moving to Boulder, Colorado and purchasing a home, that homeowner received a cancellation notice from his insurer.
• An assessor from his insurance company, Allstate, had visited the homeowner’s property and determined it was too likely to be destroyed by a wildfire. Because of the high risk, Allstate cancelled the policy.
• The homeowner was surprised and unsure what to do next. However, the homeowner also had a mortgage, and the lack of insurance left that financing in jeopardy. Lenders require home insurance to protect the collateral of the loan. If you can’t find an insurance company to cover your home, the lender could seize your home.

California Has a Last-Resort Lender for Homeowners with Cancelled Policies

California experiences more destructive wildfires than any other state. In 2018, catastrophic fires caused more than $9 billion in losses, according to the California Department of Insurance.

When the Camp Fire burnt through the down of Paradise, destroying 14,000 homes, it drove a local insurance company into bankruptcy.

California’s wildfire risk is so high that mainstream insurers refuse to insure certain properties.

In response, California has established a lender of last resort called the California Fair Access to Insurance Requirements Plan. If you can’t get insurance from the ordinary market, then you can use the California Fair Access to Insurance Requirements Plan to get the coverage you need.

It’s not just California: wildfires also threaten millions of homes in Texas and Colorado. As insurers become increasingly wary of wildfires, it’s becoming harder for homeowners to find insurance.

Why Insurers Deny Coverage for Wildfire Risk

Wildfires are a risk in most parts of the western United States. But why do insurers deny coverage for certain homes but not others? How can some homes in a neighborhood get good home insurance while others need to pay higher premiums?

Insurers consider factors like:

1. Properties surrounded by forest, which significantly increases the risk of a wildfire
2. Properties only reachable on backroads or forest service roads, which increases the
3. risk of damage and injuries and reduces the ability to fight an active fire
4. Slopes where the wildfire is likely to run
5. Vegetation in the area, including overgrown brush and trees
6. Wind patterns

After you buy home insurance in a wildfire-prone area, an assessor may visit your property to check these factors. The more factors there are to increase the risk of a wildfire, the more likely the insurer will cancel your policy.

Some Towns Are Becoming “No-Go” Zones for Insurers

As wildfire risk increases, it’s becoming increasingly difficult to buy homeowners insurance in certain communities.

In the town of Pagosa Springs, Colorado, for example, approximately 15% of homes cannot obtain insurance due to wildfire risk.

15% of properties in Pagosa Springs, Colorado land in State Farm’s third wildfire risk category. At this category, State Farm will not provide insurance to the property.

No matter how many trees the homeowners cut down, and no matter what steps the homeowner takes, the homeowner cannot obtain insurance in that location.

Meanwhile, hundreds more homes in Pagosa Springs are in State Farm’s second category, which means they’re considered high risk. Homeowners can buy insurance in this category, but it’s more expensive.

State Farm is America’s largest property and casualty insurance company. They insure more homes across the United States than any other insurer.

Wildfire Mitigation Reduces Risk – And It May Be Required

Wildfire mitigation is a familiar process for those in high-risk wildfire zones. Today, many homeowners clear brush from their property annually to reduce the risk of a fast-spreading wildfire.

In fact, some homeowners are required to do fire mitigation work on their property.

Some insurers require homeowners to clear brush from their property as part of regular home maintenance, for example. If you fail to do this, then your insurer could deny your claim due to lack of maintenance.

Meanwhile, certain residents of Boulder, Colorado must perform wildfire mitigation due to city bylaws. Since 1993, Boulder County has required all homebuilders on the western side of the county to do wildfire mitigation work. In 2010, after a devastating local fire, county land use officials recommended increasing mitigation efforts.

Today, Boulder and other counties employ a team of agencies and wildfire experts dedicated to managing wildfire risk as much as possible. These groups work with insurance companies, advocating on behalf of homeowners to ensure they can get covered.

3 Tips for Managing Wildfire Risk and Home Insurance

Many homeowners don’t consider home insurance until it’s too late. If it’s already wildfire season, or if a fire is approaching your home, then it’s too late to adjust coverage.

To manage your wildfire risk and home insurance, consider the following:

Understand your Insurance Policy and Coverage

A standard home insurance policy covers wildfire damage and all other fire damage.

However, your home may be dangerously underinsured. As home values rise, and as the cost of building increases, a growing number of homeowners are underinsured.
In fact, nearly 22% of homeowners are underinsured, according to Nationwide, with some homeowners underinsured by 60% or more.

It’s more important than ever to understand your policy and coverage. Check your policy to ensure it reflects the value of your home – especially if you have recently completed renovations or improvements.

Similarly, understand the difference between a replacement cost and actual cash value policy:

• Replacement cost policies cost more, but pay for the cost of replacing your home and your possessions after a wildfire
• Actual cash value policies are cheaper, but you receive compensation based on the value of your property minus depreciation, which could mean hundreds of thousands of dollars’ in less compensation after a loss

Keep Go Bags for Evacuation

Many people who live in a fire-prone area already keep an emergency go bag during the high risk season.

However, as the risk of wildfires increases year-round, and as wildfires impact more communities, it’s important to keep a go bag nearby at all times of year.

When wildfires occur, you may have only minutes to escape your property. Your go bag should have anything you cannot replace.

Ask your Insurer About Wildfire Mitigation Discounts

Some insurers offer wildfire mitigation discounts. Others require wildfire mitigation as part of good home maintenance.

Some wildfire mitigation tips include:

• Clear brushes and vegetation within a 100 to 200 foot radius of your home
• Protect your roof and home from embers (say, by watering your roof when a wildfire approaches)
• Build your home using fire-resistant materials
• Create a fire-resistant perimeter around your home

Remember: radiant heat from a wildfire can ignite a house up to 100 feet away. Even if the forest is 100 feet away from your home, you could be at risk of a serious wildfire.

Final Word

It takes just one small spark to ignite the next record-breaking wildfire. That small spark could occur in your backyard.

As the risk of wildfires increases, it’s becoming harder and more expensive for homeowners to find the insurance they need.

If an insurance company is disputing your wildfire insurance claim, or if you’re unsatisfied with your settlement offer, then request a free consultation from an expert ClaimsMate public adjuster today.

Read More Here: How Increasing Wildfires and Climate Change Are Affecting Home Insurance Claims & Coverage

How Home Insurance Covers Natural Disasters

After a disaster, many homeowners are surprised when their insurer denies or reduces a claim. Keep reading to discover everything you need to know about how home insurance covers natural disasters – and how to protect your home against natural disasters.

Basic Home Insurance Covers Most Natural Disasters

Most home insurance policies cover natural disasters like:

• Tornadoes
• Hurricanes
• Fires
• Lightning
• Explosions
• Volcanoes

If you live in a disaster-prone area of the country, then your home insurance policy should protect against most common perils in the region.

Most Policies Do Not Cover Floods or Earthquakes

Basic home insurance covers the perils listed above, but it does not protect against floods and earthquakes.

In fact, no normal insurance policy includes flood coverage by default. Instead, property owners need to buy flood insurance through FEMA, or a FEMA-partnered insurer, to protect homes and businesses against flood damage.

Flood insurance is particularly important when living in low-lying areas, like Florida, North and South Carolina, and parts of the Gulf Coast. However, flood insurance can be important in any coastal area or for anyone living along a flood-prone river.

Most homeowners insurance policies also do not include earthquake damage. If you live in an earthquake-prone area – like many parts of California – then you may want to buy added earthquake insurance.

Tornado Damage

Tornadoes can occur in all 50 states. Each year, approximately 1,200 tornadoes hit the United States.

Fortunately, a standard homeowners insurance policy covers tornado damage.

Home insurance includes coverage for wind, rain, and debris damage up to the limits of your policy. As long as you have sufficient coverage based on the value of your home and your possessions, your insurer should compensate you for any damage after a tornado.

However, standard insurance policies will not cover flood damage linked to the tornado. If the tornado destroys a water reservoir outside of your home, for example, and rising floodwaters destroy your basement, then insurance will typically not cover this damage – unless you have flood insurance.

Hurricanes

Insurers cover hurricanes like they cover tornadoes. Your wind, rain, and debris coverage will protect you against most hurricane damage.

Your insurance should cover your home and your possessions up to the limits of your policy. It should also cover additional living expenses, including costs you incurred as a result of the hurricane (say, if you need to leave your home and stay in a hotel for a few days).

However, hurricane coverage doesn’t cover water damage from flooding. As hurricanes become more common, it may be important to add flood coverage to your policy.

Your insurer could also deny claims if you update your policy too late. You cannot update your policy with added coverage or flood insurance after the storm has been named, for example.

Fire

All standard homeowners insurance policies cover fires, including fires started by natural disasters and accidental fires in your area.

However, your home insurance policy will not cover damage from intentional fires or fires caused by gross negligence. If you started a bonfire on your deck, for example, or asked a friend to burn down your property, then you are likely to have a fire damage insurance claim denied.

A standard homeowners insurance policy covers your dwelling, personal property, liability, and additional living expenses up to the limits of your policy.

According to the National Fire Protection Association, firefighters responded to 1.4 million fires in the United States in 2020. These fires caused $21.9 billion in property damage, and 26% of fires occurred in residential homes. All good home insurance policies need adequate fire coverage.

Lightning

Lightning can cause severe damage if it strikes on or around your property. Fortunately, a standard homeowners insurance policy covers lightning strikes and the resulting damage.

Lightning can damage your home with a direct strike, where lightning strikes or enters your home and causes damage.

Lightning can also damage your home with a near miss. The lightning strike missed your home but still caused damage. In this situation, the insurer may investigate to verify that lightning caused the damage (not a blown transformer).

Lightning can also cause a ground surge, which is a spike of electricity caused by lightning. Proving this damage to your insurer can be difficult, but insurance should cover damage caused by a ground surge.

Extreme Cold

Home insurance covers damage that occurs to your property because of extreme cold. However, you have a responsibility to maintain your home at a comfortable temperature to prevent frozen or burst pipes.

Extreme cold can lead to frozen pipes that burst and cause significant water damage. Home insurance should cover burst pipe insurance claims. However, if your insurer determines a lack of maintenance caused the burst pipe to freeze, then they could deny your claim.

Extreme cold can also lead to:

• Snow and ice accumulation on your roof and gutters, which should be covered by homeowners insurance
• Falls on frozen driveways, including any lawsuits and medical bills resulting from a fall

As long as you’ve performed all due maintenance on your home, home insurance should cover you for extreme cold damage.

Explosions

Explosions aren’t as common as other disasters on our list, but they still occur every year.

Explosions can occur because of a gas leak or an incident at a nearby home or business.

Home insurance should cover the cost of repairing your property and possessions after an explosion. As long as you did not intentionally set the explosion, insurance should cover you.

Volcanoes

Most Americans go to sleep every night without worrying about volcanoes. However, there are 161 potentially active volcanoes in the United States.

If you live in Hawaii, Alaska, and parts of the West Coast, then an active volcano could cause significant damage to your home.

When Mount St. Helens erupted in 1980, it caused around $860 million in damages, making it the most destructive volcano in United States history.

Fortunately, insurance should cover damage from volcanoes.

However, residents of Hawaii (particularly the Big Island) may have different coverage options depending on their lava-flow hazard zone.

Insurance policies may also exclude some damage resulting from a volcano, including mudslides and earthquakes.

Natural Disasters Not Covered by Home Insurance

Home insurance does not cover two main types of natural disasters, including floods and earthquakes.

Floods

Floods can occur for a variety of reasons, including:

• Tornadoes and hurricanes causing waters to rise
• Storms and heavy rains overflowing the rivers, creeks, and lakes near you
• Other natural disasters blocking drainage systems, causing water to enter your home

In all of these situations, a standard homeowners insurance policy would not cover the loss.

In fact, one of the biggest sources of insurance claim disputes is in how damage occurred to your home after a loss. Your insurance may cover hurricane damage but not flood damage, for example. Your insurer may argue that the damage occurred because of flooding (which isn’t covered), while you might insist it occurred because of wind and rain damage (which are covered). In situations with a major insurance dispute like this, you may want to hire a public adjuster.

If you live in a flood-prone area, then consider buying additional flood coverage. FEMA offers flood insurance through the National Flood Insurance Program. Insurers in your area should offer flood insurance through this program.

There’s a 30-day waiting period before flood coverage begins. Don’t wait until hurricane season before adding flood coverage to your policy.

Earthquakes

Standard home insurance does not cover earthquakes. However, if you live in an earthquake-prone area, then you may be able to add earthquake insurance to your policy.

In California, for example, the California Earthquake Authority provides earthquake insurance to residents of high-risk areas.

Similarly, standard home insurance typically does not cover damage resulting from an earthquake, including landslides, mudslides, and tsunamis.

Other Natural Disasters

Other natural disasters that usually aren’t covered by a standard home insurance policy include:

• Sinkholes
• Tsunamis
• Landslides and mudslides

Final Word

Check your policy today. You may be surprised by what’s included and excluded.
Don’t wait until it’s too late. Many homeowners don’t realize they lack flood coverage, for example, until a flood has already destroyed their home.

Read More Here: How Home Insurance Covers Natural Disasters

Why Insurers Deny Claims | Claimsmate Public Adjusters

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Your Home Insurer Denied Your Claim – What’s Next |Claimsmate Public Adjusters

Watch on YouTube here: Your Home Insurer Denied Your Claim – What’s Next |Claimsmate Public Adjusters
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Preferred Contractors: Can You Trust Contractors Referred by Your Insurance Company?

These “preferred contractors” may be your insurer’s favorite contractors to work with. But will they do good work on your home? Should you hire these preferred contractors? Do you need to hire the preferred contractors?

Keep reading to discover what you should know about contractors working with insurance companies and preferred contractors for insurance claims.

Why Insurance Companies Like Preferred Contractors

Each insurance company has contractors they prefer working with instead of others.

• Your insurer will likely tell you they like preferred contractors because they do quality work, are professional and experienced, and have a long history of working with the insurer.
• In reality, most preferred contractors have an agreement in place where the contractor charges reduced rates for work in exchange for receiving higher volumes of work from the insurer.
• In other words, the preferred contractor receives less than they normally would to repair or restore your damage, saving the insurer money.

There’s nothing wrong with working with your insurer’s preferred contractor. However, you are not obligated to do so.

You Choose The Contractor For Your Claim

As a policyholder, you choose the contractor to repair your property after a loss.

You are not obligated to use your insurance company’s recommended contractor. Instead, it’s up to you who will handle your repair work.

Sometimes, the preferred contractor is the best option. In other cases, you might have a trusted local contractor you like better.

Do Your Research

When deciding whether to use the preferred contractor or another contractor, it’s important to do your research.

Preferred contractors aren’t bad. They often perform quality work and are trusted by large insurance companies.

However, another contractor might perform better repairs at the same price. They might have more experience with your specific type of loss, and they may be the better option for your insurance claim repairs.

• Do your research to determine the best contractor for your claim:
• Get referrals and references
• Talk to other people who have had similar claims
• Check the preferred contractor and other contractors on local review websites and the Better Business Bureau
• Ask the contractor about specific experience with your type of claim – like fire damage or water damage repairs

Feeling lost or overwhelmed about working with contractors for your insurance claim? State licensed insurance claim professionals are available to help with a free initial consultation.

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Preferred Contractors Versus Independent Contractors

It’s important to understand the differences between preferred contractors and independent contractors.

Here are some of the things to consider when deciding whether to hire a preferred contractor or an independent contractor:

Dealing with Your Insurer: When you hire a preferred contractor, they have firsthand experience dealing with your insurer. They may have a better understanding of what your insurer would typically cover, how much they’ll cover, and how to approach them about costs. An independent contractor may not have this same experience and knowledge. The preferred contractor may ask your insurer for permission to do certain repairs, for example, while an independent contractor might complete repairs and work with the insurance company to ensure those repairs are covered. Keep in mind: in many states, any kind of repair contractor is not legally allowed to interpret insurance policy language or negotiate claim settlements on behalf of the policyholder.

Preferred Contractors Get Paid Less for the Same Work: Generally, insurers have agreements with preferred contractors. The preferred contractor agrees to receive lower compensation than normal in exchange for a higher volume of work from the insurer. Instead of earning, say, $5,000 in profit for repairing your home after a loss, the preferred contractor might earn $3,500 in profit.

All Reputable Contractors Are Licensed, Bonded, and Insured: Whether you work with a preferred contractor or an independent contractor, you should be dealing with a licensed, bonded, and insured professional dedicated to repairing your home.

All Reputable Contractors Effectively Restore your Property to Pre-Loss Condition: Both preferred contractors and independent contractors should be entirely capable of restoring your property to pre-loss condition. Insurance companies shouldn’t be using low-quality contractors to perform shoddy repairs.

Get an Estimate from the Independent Contractor to Verify Costs Fit Your Claim: Sometimes, an independent contractor can’t repair your property as cheaply as a larger contractor. The preferred contractor may be a larger firm that can buy materials in bulk, for example, and undercut smaller competitors. Before working with an independent contractor, make sure their costs are within reach of your insurer’s payout. Otherwise, you could pay for repairs out of pocket.

Consider Hiring A Public Adjuster To Help Manage Your Claim

Major insurance claims are hard work. You need to decide on the right contractor. You need to make sure the insurance covers all damage to your property and home. You need to make sure you receive fair compensation for your loss.

Juggling all of these things can be a hassle.

That’s why many homeowners hire public adjusters to help manage an insurance claim for property damage.

A public adjuster is not a repair contractor. Public adjusters are state licensed insurance claim professionals that assist policyholders. The public adjuster manages your claim from start to finish. The public adjuster advocates for your best interests against the insurance company’s best interests. They analyze your claim and insurance policy, help oversee repairs, and ensure you receive every penny owed to you.

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Bottom Line On Working With Contractors For Insurance Claim Repairs

You shouldn’t feel like your insurance company is bullying you into using a specific contractor to repair your home.

You have the right to choose any contractor you like to repair your home. Sometimes, choosing the preferred contractor is the smart choice. In other cases, it’s better choosing an independent contractor for your claim.

Research contractors in your area to ensure you’re getting the best contractor for your project. Or, if you’re feeling overwhelmed, talk to a public adjuster to see how they can help expertly manage your claim.

See Full Article Here: Preferred Contractors: Can You Trust Contractors Referred by Your Insurance Company?

Reasons Insurance Companies Deny Fire Claims & How To Get Help

Could your insurance company deny your fire damage insurance claim? Keep reading to discover some of the most common reasons insurers deny fire damage insurance claims.

Arson or Suspicion of Arson

Insurance does not cover deliberate acts.

If you burn down your house intentionally because you want an insurance payout, for example, then insurance will deny your claim. Or, if you ask someone else to burn down your house, then insurance will still deny your claim.

However, insurance companies shouldn’t deny your claim simply because they suspect arson. Instead, they should provide concrete evidence.

If the insurance company denies your claim due to arson but has no proof, then the insurer may be acting in bad faith. An insurer could be denying the homeowner rightful compensation without cause.

Insurance Fraud

Insurers use many reasons to deny claims. If your insurer suspects you have committed insurance fraud, then your insurer may deny your claim.

The insurer may use different language about your suspected insurance fraud, including:

• The fire department was unable to determine the source of the fire
• The insurer believes you or someone else committed arson to defraud the insurer
• You are lying or hiding details about some aspect of your insurance claim

Misrepresentation

Insurance companies frequently deny claims due to “misrepresentation,” which is a way of saying you misrepresented certain things to your insurance company.

If your child tipped over a candle in a room, for example, and started a major fire, then you might lie and say the candle tipped over on its own. You might be worried that your insurer will deny your claim if you tell the truth.

You should always be upfront and honest with your insurer – especially with major fire damage insurance claims. Insurers can and will investigate the incident, and they could accuse you of misrepresentation if you lie about any aspect of your claim.

Illegal Activities

Insurance companies are not obligated to cover fires that were started because of illegal activities.

If you were running an illegal grow operation in your home, for example, and faulty electrical equipment led to a fire, then your insurer could deny your claim.

There are countless illegal activities that could lead your insurer to deny your claim. However, the most common activities include the manufacturing and selling of illicit substances, including drugs and alcohol.

Lack of Proof or Documentation

You must have evidence proving the loss, including documents proving the value of each item you lost.

If you claim a fire destroyed your $3,000 gaming PC, for example, then you might need evidence proving you owned a $3,000 gaming PC. Otherwise, your insurer could deny this part of your claim.

If you cannot verify the prices or value of items in your home, then your insurer is unlikely to cover these items (or, they’ll cover them at a reduced rate).

Unpermitted Electrical Work

There’s a reason you need to work with licensed, bonded, and insured electricians: they’re certified to perform quality work.

If an unlicensed electrician installed shoddy electrical work in your home, then it could negate or reduce your fire damage insurance claim.

As a homeowner, you are responsible for maintaining your home in good condition. You have an obligation to fix issues with all necessary permits and inspections.

If you failed to maintain your home’s electrical system by performing unpermitted work or attempting poor-quality DIY repairs, then your insurer could deny your claim.

Natural Weathering, Prior Damage, and Maintenance Issues

Your home develops maintenance issues over time, including natural weathering and other problems.

After a fire damage insurance claim, your insurer will not cover the cost of repairing or replacing any damage caused by natural wearing or maintenance issues.

Similarly, your insurer could reduce your claim because of previous damage. If damage already occurred before the fire, for example, then your insurer could reduce this part of your claim.

You Didn’t Take Preventative Measures

You need to take reasonable precautions to limit loss or damage to your insured property.

If you accidentally started a fire in your kitchen, for example, and then simply left the house to run errands, then your insurer might deny your claim. You did not use a fire extinguisher to control the blaze, nor did you attempt to call emergency services.

As long as it’s safe to do so, you must take reasonable steps to limit fire damage – or at least contact emergency services as soon as possible.

Missed Insurance Premiums

If you missed paying your insurance premiums, or if you did not pay your latest premiums on time, then your insurer could deny your claim.

As a policyholder, you have an obligation to pay premiums on time. If you did not live up to this obligation, then your insurer could deny your fire damage claim.

Denying, Delaying, or Underpaying Claims

Sometimes, the insurance company doesn’t deny your claim outright; instead, the insurer delays or underpays your claim.

Insurance companies may drag their feet on a major fire damage insurance claim, for example. It’s a costly claim, and the insurance company wants to be thorough.

However, some insurers may use delays as a negotiation tactic, knowing that policyholders are more likely to accept a smaller payout after weeks of stress and delays.

An insurance company may demand excessive evidence, challenge every aspect of your claim, and use every possible excuse to delay or reduce a claim settlement.

In all of these situations, the insurer may not be acting in good faith. Insurers need to respond to policyholders in a timely manner. Otherwise, they’re acting in bad faith.

Steps to Take When the Insurer Denies a Fire Damage Claim

If an insurer denies or reduces your claim, then it’s not the end of your claim. Instead, you can fight back, negotiate, and ensure you receive every penny owed to you in compensation.

Here are the steps to take when the insurer denies your fire damage claim:

• Ask for Written Justification: Your insurer needs to provide written justification for claim denial. Most insurers are thorough with their documentation, but be sure to receive a copy of all documents. You may need this documented evidence for future negotiations.
• Hire a Public Adjuster: Public adjusters are licensed insurance professionals who represent your best interests – not your insurer’s best interests. Hire a public adjuster to negotiate with the insurer on your behalf. A good public adjuster manages your claim from start to finish while obtaining the highest possible amount of compensation.
• Review your Home Insurance Policy: Sometimes, your home insurance policy doesn’t cover everything you thought it did. Ideally, you’ll review your policy before a loss. However, reviewing your policy after a loss can determine if your insurance company is taking advantage of you – or if your policy legitimately does not cover certain items you thought it did.

Final Word: Insurers Use Any Reason to Deny a Fire Insurance Claim

Insurance companies aren’t on your side. Insurance companies are for-profit businesses that want to pay as little for claim settlements as legally possible.

Insurers may use any number of reasons to deny or reduce a fire insurance claim.

Hire professional help, review your policy regularly, and document your claim to ensure your insurer has no reason to deny your fire insurance claim.

Post Source Here: Reasons Insurance Companies Deny Fire Claims & How To Get Help