What To Do If State Farm Denied Your Water Damage Claim

Posted on January 26, 2024


Frances Badayos | author

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ICHQ | Site Author

Major storms can inflict severe damage on your home or office building. You may expect your insurance company to cover the costs of these repairs. If your insurer is State Farm, though, receiving sufficient compensation might be challenging.

State Farm sometimes outright denies water damage claims, leaving you without the resources you need to rebuild your life or your business.

When this happens, you need assistance from someone with in-depth experience with insurance companies. At Insurance Claim HQ, homeowners insurance claims are our chief focus. Our water damage attorneys serving New Orleans know how to help you when you face a State Farm denied water damage claim in Louisiana.

Why Is State Farm Notorious for Undervaluing or Denying Water Damage Claims?

State Farm has recently gained a reputation for mishandling insurance claims. In the aftermath of recent natural disasters, such as wildfires and hurricanes, customers expressed concerns that the company did not process claims properly. These questionable practices resulted in a $100 million settlement in 2022.

While an insurance company sometimes has valid reasons to deny a claim, many State Farm water damage claims do not fall into these categories. Our team can help you through your denial letter to determine whether the company had a valid reason for the denial.

Why Does State Farm Deny So Many Water Damage Claims?

There are many factors behind a State Farm denied water damage claim. A significant one is the company’s motivation. Receiving fair compensation is in the best interest of clients. However, many insurance companies focus on their profits. Paying out lower claims or denying them entirely allows the insurer to retain more funds.

Additionally, many customers file claims after hurricanes. Insurance companies like State Farm sometimes navigate this situation by giving little attention to individual claims. Instead of understanding the details of your claim, the company offers a general payout that does not meet your needs.

Our attorneys know that this situation makes it difficult for you to recover from a severe storm.

Our team can work through the fine details of your situation to determine the full extent of your needs.

What Are Some of the Reasons State Farm Gives for Denying Water Damage Claims?

A State Farm water damage claim might give several explanations for a denial.

Different coverage

The details of your insurance policy sometimes depend on where you live. States along the Gulf Coast have different insurance requirements. Your policy’s water damage coverage can have different terms and conditions. When State Farm denies your claim, the company may point to specific provisions as a reason for the denial.

Specific exclusions

Each insurance policy has a list of what it does and does not cover. However, it may not be clear what kind of damage falls into these categories. When it comes to water damage, the boundaries are especially unclear.

State Farm may not automatically include natural disasters like hurricanes in insurance policies. This coverage is sometimes part of an additional policy you have to purchase. However, it might be unclear whether you lack this coverage. A State Farm water damage claim could receive a denial because the company claims your policy does not cover hurricane damage.

Missed deadlines

You typically have to file a State Farm water damage claim within a certain timeframe. However, your policy may not clearly state the deadline. Our team knows this lack of clarity makes it difficult for you to work with your insurer, especially since repairing your office building or your home is your top priority.

Missing documentation

Your claim needs to include detailed documentation about the damage to your home. State Farm sometimes denies claims because an adjuster says you have not submitted enough evidence about your situation. Because major storms can result in so many filed claims, an adjustor may not pay enough attention to the full extent of damage to your home or office building.

The team at Insurance Claim HQ knows that a State Farm denied water damage claim can sometimes rest on missing or unclear details. We can go through the denial letter to evaluate fully each reason for the rejected claim.

How Can You Make State Farm Pay the Full Value of Your Damage Claim?

Our attorneys can help you gather the necessary evidence to demonstrate the full extent of the water damage to your home or building. This evidence consists of the following items:

  • Pictures of the damage
  • Itemized lists of damaged goods
  • Estimates for the repairs
  • Receipts for emergency fixes

With all this evidence, our team can help you file your State Farm water damage claim.

How Can You Handle a State Farm Denied Water Damage Claim?

Dealing with the aftermath of a storm is a difficult situation. You, your family, and your colleagues do not need the added stress of a State Farm denied water damage claim.

Contact our team at Insurance Claim HQ for a free consultation so you can speak to our insurance bad faith lawyers. Our legal team has the experience and knowledge to guide you through this challenging situation.