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Fire is one of the leading causes of property damage. The National Fire Protection Association (NFPA) reports that nearly 400,000 homes are damaged by fire in the United States each year. Many businesses are also destroyed each year due to fires. Even if your home or business is not a total loss—which it certainly might be—property restoration from a fire is costly.
You need your insurance benefits. Unfortunately, too many policyholders end up dealing with denials. At Insurance Claim HQ, we take on insurance companies in appeals. Here, our New Orleans fire damage attorney explains what to do after an insurance company denies your fire damage claim.
Denied Fire Damage Claim: The First Three Steps You Need to Take
The denial of a fire damage claim can be stressful and frustrating. A proactive approach is a must to protect your rights and your interests. Here are the first three steps that you need to take if your fire damage claim was denied in New Orleans or elsewhere in the Gulf Coast region:
1. Preserve the Denial Letter: The denial letter from the insurance company is a critical document. Along with other things, it should explain the specific reasons your fire damage claim was rejected. The letter can help to set the foundation for your appeal. You should carefully read and review the denial letter—taking note of the policy language cited and the insurer’s justification for refusing to pay the fire damage claim.
2. Gather Supporting Evidence: To successfully dispute a denied fire damage claim, you need strong supporting evidence. Indeed, evidence is key to any winning property insurance appeal. Homeowners or business owners should start by collecting documentation—from photographs or videos of the fire damage to repair estimates to receipts for any property improvements. You may also want to gather documentation such as reports from the fire department, eyewitness statements, and expert assessments. A well-documented claim increases the likelihood of overturning the fire damage denial.
3. Consult With an Attorney: A denial of a fire damage claim is not the end of the road. With that being said, it does mean that the insurance company is preparing for a fight. It is imperative that you have a top-tier property insurance appeals lawyer on your side. An attorney will review your denial letter, assess your evidence, and determine the best path forward to appeal the property insurance denial. You do not have to take on a property insurance company alone after a fire damage denial.
An Overview of Common Reasons Insurance Companies Deny Fire Claims
You need to determine exactly why the insurance company denied your fire damage claim. Within your denial letter, the insurer should provide a basic overview of its reasoning. It may cite one or more reasons for refusing to provide coverage.
Some of the most common reasons why property insurance companies deny fire damage claims in New Orleans include:
- Nonpayment (Lapsed Coverage): If your premium payments are not up-to-date, your coverage may lapse, leaving you without protection when a fire occurs. Insurance companies often deny claims based on nonpayment, even if the lapse was unintentional. It is crucial to maintain accurate records of payments and correspondence with your insurer.
- Policy Exclusion: Insurance policies often contain exclusions that limit coverage for certain types of fires or damages. For example, fires caused by arson or certain natural disasters such as wildfires may be excluded depending on the specific terms of the policy language.
- Fire Safety Negligence: Insurance companies may deny claims if they determine that fire damage resulted from negligence, such as failing to maintain smoke detectors or ignoring electrical hazards. They argue that policyholders have a responsibility to take reasonable steps to prevent fires.
- Defective Workmanship: If a fire is caused by faulty construction, poor electrical work, or defective materials, insurers may deny claims, arguing that the damage falls outside policy coverage. The insurer may assert that the fire resulted from work completed by a third party, such as a contractor or builder, and is not their responsibility. Expert testimony is key in a case where the insurance company is putting the blame on defective workmanship.
- Material Misrepresentation: Material misrepresentation occurs when an insurer believes you provided false or incomplete information during the policy application or claim process. For instance, failure to disclose previous fire damage or the presence of hazardous materials could result in denial.
- Lack of Sufficient Evidence: In some cases, the fire damage denial may be issued because the policyholder failed to provide sufficient evidence of the existence, cause, or damage caused by the fire. You may be able to successfully challenge this type of denial by including more comprehensive evidence as part of your appeal.
- Bad Faith By Insurance Company: Unfortunately, some insurance companies act in bad faith. They may unfairly deny or delay fire claims without proper justification. Some examples include refusing to investigate, undervaluing damages, misrepresenting policy terms, and refusing to settle. You can challenge a bad-faith fire damage denial.
House Fire Insurance Claim Denied? You Have the Right to Appeal
Was your homeowners’ insurance claim for fire damage denied in New Orleans or elsewhere in the Gulf Coast region? You have the right to file an appeal. Here are two key points to know about the process for how to appeal a fire damage claim:
- Your Initial Appeal is Often an Administrative Appeal: In most cases, the first step in challenging a denied house fire insurance claim is an administrative appeal. These are internal appeals. The process involves submitting a formal request to the insurance company to reconsider its decision. It is crucial to provide additional evidence as part of any administrative appeal. Settlement negotiations with the insurer will often take place.
- You May Need to Sue Your Insurance Company for an Unfair Denial: If your administrative appeal is unsuccessful, and you believe the denial was unfair or in bad faith, you have the right to file a lawsuit against your insurance company. An experienced New Orleans fire damage attorney can help you gather evidence, prove the validity of your claim, and expose any bad faith practices. A lawsuit is a big step—but it may be required to get justice and the financial support you need to restore your property from a fire.
Why Trust Our New Orleans Fire Damage Insurance Lawyers for a Claim Denial
Fire damage claims are complicated—especially so if the insurance company has already denied coverage. At Insurance Claim HQ, we are committed to advocating for the best interests of homeowners and business owners. The unfortunate reality is that insurance companies do sometimes unfairly and incorrectly deny fire damage claims. As a policyholder, it is crucial that you understand that your insurance company does not have the unilateral right to make the financial decision. You can challenge an unfair denial. With a proven record of case results, our New Orleans property damage attorneys have the skills and experience to take on fire damage denials.
Schedule Your Free Consultation With Our New Orleans Fire Damage Attorney Today
At Insurance Claim HQ, our New Orleans homeowners’ insurance lawyer is committed to providing top-tier, personalized advocacy to clients. Our firm has extensive experience with fire damage claims—including the appeals process. If your fire damage claim was denied, we are here to help.
Contact us today for a free, no obligation consultation. We represent policyholders in fire damage claims in New Orleans, Louisiana, and throughout the entire Gulf Coast region.