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Common Reasons House Fire Insurance Claims Are Rejected & What to Do if Your Claim is Denied


There are many reasons why a house fire insurance claim may be denied. One of the most common is inadequate, or insufficient, coverage.

Insufficient coverage could result from a number of different factors, such as a specific fire type isn’t covered by your policy or your policy only covers damage brought on directly by flames and excludes damage brought on by smoke or water from fire sprinklers.

Although your insurer is only required to pay for losses covered by your individual policy, there are situations when they will incorrectly reject fire insurance claims that you are entitled to.

That’s why it is critical to properly study your homeowner’s insurance coverage after a house fire.

You may also want to consult with a lawyer about a denied claim. We will cover what steps you can take after a house fire insurance claim later in this article.

First, here are a few more reasons why claims are denied.

Suspected fraud

Another common reason house fire insurance claims are denied is due to suspected fraud or arson.

Valuation conflicts

Another frequent reason for denial of a house fire insurance claim is disagreement over the valuation of destroyed items. Companies frequently contest homeowners’ estimates in an effort to avoid paying a house fire insurance claim or lowering the amount they have to pay.

Disputed damage

Despite the fact that smoke and water damage were indirectly caused by the fire, some fire insurance policies only cover damage caused by fire.

Damage disputes may result from this, and an insurer may decide to reject your fire insurance claim as a result. If your insurer argues that a large portion of the damage to your house was caused by smoke – for instance, if the top level of your house was largely destroyed by smoke from the fire rather than flames – they may refuse to pay out on your claim.

Damage disagreements can be challenging to settle. To fully understand and assert your rights, it’s always a good idea to study your policy from cover to cover and speak with a lawyer.

Poor workmanship

Defective design or craftsmanship is one more frequent cause for house fire insurance claim denial. If your fire insurance claim is rejected for this reason, the insurer is implying that some aspect of your home was built or installed improperly. This may occur if your contractor used a building material that has since been recalled due to poor fire protection or subpar performance, or if they lacked the required licensing and permits for your property.

All of this is why it’s crucial to understand your homeowner’s insurance coverage and have competent counsel on your side. When you pay your insurance premiums on time, it is the responsibility of your insurer to defend you when you have a valid claim.

So what can you do if your claim is denied?

Here are some tips if your house fire insurance claim has been denied:

Insurance companies legitimately reject fire insurance claims for a variety of reasons. However, this does not imply that all fire claim denials are valid.

There are a few things you should do right away if you suffered a fire and your insurance company refused your claim.

Examine the rejection letter

 A letter outlining the specific reasons your insurance company rejected your claim will be sent to you. Compare the information in this letter with the coverage information in your insurance policy.

You should double-check that you understand the denial letter’s and your policy’s terminology. There is no need to take further action if it is obvious that your coverage was insufficient to cover your loss or if the hazard was excluded from your policy.

If you disagree with the denial, contact your agent or insurance adjuster to argue your case.

Make sure to take notes on every interaction, including the dates, times, persons you speak with, the information shared, and any follow-up actions that must be taken, by whom, and by when.

You should also create the best possible case

Sometimes no amount of reasoning or tenacity can reverse a denied fire claim. After your claim is rejected, it is your responsibility as the insured to substantiate your loss. Create a compelling argument that includes:

– Extensive proof of the loss

– Evidence from the policy demonstrating that the loss should be covered

– Reasons to have your claim that was denied reconsidered

– A response to the refusal by your insurance provider

– Arguments in support of your refutation

– Proof and supporting paperwork


Take your case up the chain of command

 No matter how difficult things may seem, you have to stand up for yourself. And you might have to fight more fiercely than you ever have to get your claim overturned.

So if you still reasonably believe your loss is covered by the terms of your insurance policy after you and your insurance company have argued over how your coverage should be interpreted, start moving up the chain and arguing your case to your insurance adjuster’s and agent’s supervisors, managers, directors, etc.

Once more, keep thorough records of each and every encounter. Even if you are unsuccessful, keep track of every contact effort, including the date, time, and outcome. You’ll be able to pursue your case and make the denied claim stronger if you keep your notes, correspondence, copies, and any supporting documentation organized.

Make a complaint to the insurance commissioner in your state

You can officially complain to your state’s insurance board if you still feel that your loss should be covered and your insurance provider keeps putting off and rejecting your claim.

This procedure will automatically initiate a review of your refused claim, your attempts to have the decision overturned, and your supporting documentation.

Each complaint will be examined by the insurance commissioner based on its own merits, and they will instruct the insurance provider on how to respond.

Keep in mind that you should exhaust all non-complaint options before filing a complaint. Failing to do so will just result in more delays and more work from you later.

As to how to proceed with this complaint, the particular steps that must be taken to file your claim are outlined in your insurance policy.

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