It can be frustrating and disappointing when you receive a water claim damage denial. Your first move should be to review and understand the intricacies of your insurance policy and the denial letter. This can tell you why your claim was denied and what you can do about the denial.
A Boca Raton flood damage lawyer from our firm can assist you with these tasks. We can help you navigate the convoluted language of insurance policies and champion your rights, ensuring that your claim is fairly evaluated.
Common Reasons for Water Damage Claim Denials
Water damage claims can be complicated, with insurance companies scrutinizing every detail before approval. Understanding why your water damage claim was denied can help you figure out what to do now.
Ambiguous Language Can Confuse Policyholders
Many policies have purposely ambiguous language. People inherently believe that if it says your home is covered, the nature of the event that caused the damage should not be an issue—and are often caught off-guard when they realize insurance companies do not play by the same rules.
It can seem a bit unfair and like trickery when you are the homeowner left with a destroyed home and no way to collect. If you live in Florida and your policy uses ambiguous language, a court might side with you. The Florida Supreme Court agrees that this is not good business ethics and has sided with policyholders in this regard.
Our Florida bad faith insurance lawyers are committed to being there when you need us, including for evening or weekend appointments.
Lack of Maintenance and Neglect of Water Systems
Insurers distinguish between sudden/accidental damage and issues arising from neglect or lack of maintenance. For instance, a claim might be denied if a leaking roof was due to years of neglect or if routine maintenance could have prevented an appliance’s leak. These scenarios underscore the importance of regular upkeep to avoid potential denials.
It is a good idea to keep maintenance records in a safe place so you can show the insurer that you took care of your property.
Gradual Damage
Gradual damage, which occurs over time, is often not covered by insurance policies. This can include scenarios such as slow leaks from plumbing that cause mold or rot. Insurers view these as maintenance issues, assuming homeowners have ample time to detect and address the problem before significant damage occurs.
Improper Documentation of Water Damage
Thorough documentation of the damage and the immediate aftermath is critical. Photographs, detailed notes, and receipts for any immediate repairs can substantiate your claim. Effective documentation acts as undeniable proof of the extent and cause of the damage, facilitating a smoother claims process.
Unreported or Late Damage Claims
Insurers may view delays in filing as an indication that the damage was not severe, or they may question the integrity of the claim. Immediate reporting not only demonstrates urgency but also allows insurers to assess the damage accurately, reducing the likelihood of a denial.
If you did not file your property damage claim immediately, the insurer needs to know why. Our legal team can help prove you had a good reason for the delay.
Flood Damage Is Different From Water Damage
It is also important to recognize that flood-related water damage is not covered under homeowners’ policies.
The difference between water damage and flood damage is as follows:
- Water damage typically originates from inside the building and is caused by structural failures, such as leaks, burst pipes, or sewer backups.
- Flood damage comes from outside the building and is the result of a natural phenomenon, such as floods, flash floods, or hurricanes.
If you reside in a district with a possibility of flooding, you must purchase a policy from the National Flood Insurance Program (NFIP). Check with the flood program by entering your address and determining whether your home is in a flood zone.
If you try to file a flood damage claim with your homeowners’ insurance—or vice versa—you will almost certainly receive a denial.
Common Ways Water Damage Occurs
You might be able to file a water damage insurance claim for any of the following reasons:
- Broken or leaky pipes
- Roof leaks
- Foundation cracks
- Faulty appliances
- Broken windows
- Sewer backup
As the homeowner, take advantage of your rights. You paid for the coverage, and the insurance company has a contract that clearly shows their level of responsibility.
How to Prevent Bad Faith Behaviors During the Claims Process
Right now, you are probably feeling very overwhelmed and angry. You know that water damage is the worst thing that can happen to your home. If it is not remedied immediately, the damage can lead to mold, rot, and even more destruction. And yet, the insurance company may be doing everything in its power to make your situation worse.
What Is Bad-Faith Behavior During a Water Damage Insurance Claim?
Bad faith refers to unfair practices by insurers, such as unjustifiably denying a claim or failing to conduct a thorough investigation. This behavior breaches the implicit covenant of good faith and fair dealing owed to policyholders. Reasons for bad-faith denials might include:
- Refusing a claim without a reasonable basis
- Failing to communicate pertinent information to the claimant
- Not providing a timely explanation for the denial
Recognizing bad-faith tactics is crucial for policyholders, empowering them to challenge unfair denials and seek rightful compensation.
Protect Your Right to Compensation for Water Damage
You don’t have to accept a denial letter or bad-faith behavior. If your water damage claim was denied, a disaster claims recovery attorney from our office can tell you what to do now. We make sure your claim is handled justly, offering the knowledge and experience to challenge denials and secure the compensation you deserve.
Call GED Lawyers After a Water Damage Claim Denial
If you face a denied claim, we can help. Our flood damage lawyers in Florida have assisted residents in working through the complicated legal process of filing claims, collecting evidence, and negotiating with insurers.
Your home is your most valuable asset. Contact GED Lawyers’ office today and let our team members help you protect it, starting with a free consultation.
