Can You Dispute a Home Insurance Claim Settlement?

Your homeowner's insurance coverage helps protect you from financial loss should your house become damaged or destroyed as the result of numerous perils. The perils in a standard policy typically number about seventeen. These extend from something that may be minor, such as vandalism, to something that is catastrophic, such as a house fire that totally destroys your home and all your belongings within the home.

There's much more contained in your homeowner's policy than just structure and personal possessions coverage, including liability should someone get injured while on your property or in your home and later bring a lawsuit against you for damages.

Filing a Homeowner's Insurance Policy Claim

When something happens, you file a claim with your insurance company and await getting reimbursed within the limits and provisions of your policy. But what if the claim you submitted isn't settled to your satisfaction or gets denied completely? Unfortunately, this is not an uncommon occurrence and can be incredibly frustrating. There are a number of reasons an insurance company may deny a claim you've filed and that you think should be covered. Some of those reasons include:

• The damage you've reported isn't covered in your policy
• The damage you're claiming wasn't correctly reported
• The replacement cost of the damage you're reporting is less than the amount of your deductible

Disputing a Home Insurance Claim Settlement

If you believe your claim was unjustly denied or the payout amount was less than you should have received, you can dispute these results. While you may choose to hire legal assistance, this may be expensive. Many will choose to dispute a Home Insurance Claim Settlement on their own. Here are the steps to take:

1. Read and understand your coverage. You may have filed a claim for something you thought was covered but wasn't.
2. If your claim is denied, review the insurer's documentation explaining their disapproval. Contact your agent if you have questions. Assemble any documents proving why you're entitled to your claim.
3. Send a letter to the insurer's claims adjuster explaining your position. Include any evidence you have to show the claim was improperly handled. Request the adjuster review the claim and respond within a stated time frame. Send a courtesy copy to the adjuster's superior.
4. Request the insurer send a second adjuster to conduct a second inspection.
5. If the insurer won't change their position, file a formal complaint with your State Insurance Department.