Our Florida, Louisiana, Mississippi, and Puerto Rico insurance claims attorneys at The Morgan Law Group P.A., know that fire damage produces some of the most devastating results in homes and businesses throughout the country.
The only thing that is potentially more damaging is the insurance company denying the claim that results from the fire.
Unfortunately, it happens all too often.
Here are the top reasons insurance companies deny fire damage claims, and what you can do if it happens to you.
Non-Payment of the Insurance Premium
The most obvious reason insurance companies deny any claim is that the policy is in arrears. If your insurance payments are not paid on time and in full, the insurance company is not obligated to pay a damage claim of any type.
The Insurance Policy Limit Does Not Cover the Damage
Home or business insurance policies and their coverage limits are based on the potential sale price of the home. When increased repair and construction costs soar beyond the policy limit, the insurance company may deny the full value of the claim.
Inflating the Value of Lost Property
It is important to keep a running inventory of all property inside and outside the home — including pictures and values — so all insurance claim requests are accurate. If the insurance company believes the homeowner is inflating the value of their losses, they may reject the claim.
The Property Owner Conducted Electrical Work Without Permits
A fire insurance claim is subject to denial if investigators learn electrical work was conducted without proper inspections or permits.
Whenever a home or business upgrades and improvements are conducted, it is important to get permits for the work and adhere to local, state, and other applicable building codes before starting.
Suspicion of Arson
If the insurance company suspects arson, the insurance company may deny a fire claim until a criminal investigation is completed.
Evidence of Illegal Activities
If investigators found evidence of illegal activities in the home — including manufacturing illicit drugs on the property — before the fire, the insurance company may deny the fire claim.
What Can I Do If My Fire Damage Claim Is Denied?
Insurance companies are notorious for undervaluing or denying home and business damage claims, especially when a fire is a culprit. Do not allow them to get away with denying the coverage your policy provides, and for which you have paid.
If your home or business is damaged by fire, contact our experienced insurance claims attorneys in Florida, Mississippi, Louisiana, and Puerto Rico at 888-904-2524 to schedule a free consultation and learn how we can help you pursue the outcome you deserve from your insurance policy.