Has your insurance company denied your water damage claim?
You aren’t alone. Nearly a quarter of all homeowners’ insurance claims in a recent year involved water damage, with the average claim value exceeding $12,500. During such a stressful time, you should be able to rely on your insurance company to provide a fair payout based on your policy terms.
If you’re getting the runaround, you can challenge the denial and fight for the coverage your homeowners’ insurance policy provides.
Getting help from a trusted water damage claim lawyer from Insurance Claim HQ can help you in the battle for fair compensation. For over 25 years, we have helped home and business owners challenge unfair insurance practices, recovering over $1 billion in property casualty cases for our clients nationwide.
Having your water damage claim denied can be discouraging, but you don’t have to accept your provider’s decision as the final word. Let us review your policy, assess your options, and identify ways our law firm may assist you.
Contact us today for a free consultation.
Common Reasons Insurance Companies Deny Water Damage Claims
When insurers deny water damage insurance claims, they typically cite specific policy terms or facts that they claim support the denial. However, their reasons are not always accurate. In many situations, an insurer’s interpretation of policy terms or facts can be challenged.
Common excuses providers use to reject water damage insurance claims include:
Damage from gradual leaks
Insurers may refuse a claim if they determine that the water damage resulted from a slow leak that occurred over time rather than a sudden event. They could argue that this falls under maintenance issues and isn’t a covered loss.
Policy exclusions
Most homeowners’ policies list specific causes of water damage they will not cover, like flood damage from outside the home or sewage backups. They also may not provide coverage for mold remediation. If your provider insists that your loss is not a covered peril, it could deny payment.
Lack of timely reporting
Insurance policies require you to report covered losses quickly. If you wait too long, your insurer might argue that the delay impaired its ability to inspect the damage and reject your claim.
Wear and tear
If your insurer decides that the problem came from old plumbing, corroded pipes, or other factors related to normal aging, it could deny your claim. It may state that the policy does not apply because it only covers sudden and accidental damage.
No direct physical loss
Even if water was present, an adjuster may report that it was not the source of damage to covered property. Without evidence of direct physical loss, insurers could argue there is no claim to pay.
Failure to prevent further damage
After a water damage event, insurance policies usually dictate that you take proactive steps to prevent it from worsening. If your insurer believes you did not act swiftly enough to make temporary repairs, it could deny payment.
Keep in mind that while water damage is typically covered under many standard homeowners’ insurance policies, it differs from flood insurance. You need a separate policy to cover flood damage, which is available through the National Flood Insurance Program (NFIP) or a private insurer.
Steps to Take After Your Water Damage Claim Is Denied
Here’s what to do if you’re dealing with a denied water damage claim:
- Review your denial letter carefully to understand the specific reasons the insurance company turned down your claim.
- Compare the denial letter to your policy to see whether the insurer’s stated reasons match the terms of your coverage.
- Gather relevant evidence, including photos, receipts, and repair estimates. You can also get an independent damage inspection from a licensed contractor.
- Contact your insurance agent for more information on how they reached their decision. Request a written explanation outlining the evidence and policy terms they relied on. Keep a detailed timeline of your communications, including dates, names, and summaries.
- Speak with an experienced water damage lawyer. Ask them to review your policy and provide guidance on your right to appeal or file a lawsuit.
Documents and Evidence You Need to Support Your Appeal
If you wish to appeal the insurance company’s decision, you’ll need clear and organized evidence to support your case. Start by:
- Downloading or printing out your insurance policy and any addenda so you can reference specific language during your appeal
- Keeping a copy of the denial letter from your insurer
- Collecting photos and video footage from the water damage that captured the state of the property as soon after the event as possible
- Gathering inspection reports, repair estimates from restoration companies, invoices, and receipts that show the actual or estimated cost of fixing or replacing damaged property
- Saving all emails, letters, and notes from conversations with the insurer
Store everything in a secure location so you can easily access and share it with your attorney.
Signs of Insurance Bad Faith That Could Help Your Appeal
Unfortunately, some insurers act in bad faith by denying water damage claims without valid reasons or failing to handle claims in a reasonable manner.
Other examples of unfair practices include refusing to explain denials in detail, ignoring your questions, delaying inspections without cause, or misrepresenting what your policy covers.
In Louisiana, you usually have 10 years to sue for bad faith insurance practices, though some policies shorten that filing window to just two years.
If you believe your insurer acted in bad faith during the water damage claim process, you could use that as leverage in your appeal and possibly in a lawsuit to seek additional compensation. A water damage claim lawyer can help you identify bad faith practices and file claims in response.
When to Hire a Louisiana Water Damage Insurance Attorney
You should contact a lawyer as soon as you receive a letter stating that your water damage claim was denied. An attorney can review your policy, explain your rights, and identify possible grounds for an appeal.
They can also communicate with the insurance company on your behalf, push back against unfair claim processing, and take your case to court if necessary.
Having a lawyer involved may help move the process along and encourage the insurer to consider a fair resolution. However, you must act quickly. The sooner you contact a water damage lawyer, the better they’ll be able to protect your claim and pursue a fair outcome.
