When people lose their homes to flooding, they need to focus on their recovery, not reading legalese and filling out paperwork.
When flooding has damaged someone’s residence, the last thing they want is to have the insurance company deny their claim. They need those funds to start rebuilding their lives, yet these denials happen all too often.
In my experience as a lawyer who lives and works in hurricane country, there are a few common reasons why insurance companies deny claims. The good news is that attorneys can help people get the payouts they deserve by understanding how these companies work.
Why insurers deny flood claims
First and foremost, it’s vital for property owners to understand the fine print of their insurance policies from the beginning. If they don’t pay close attention to the legal terms of their coverage, then it might contain holes they hadn’t realized were there. Insurance companies can take advantage of these holes to deny claims.
For instance, someone’s policy might exclude coverage for certain kinds of damages. It’s common for homeowner’s insurance not to include flood insurance, so this must be purchased either separately or as a supplemental rider. The policy also has to be active — those that have been allowed to lapse don’t cover people when they need them.
Even if someone has dedicated flood insurance, the insurance company can deny their claim if they have insufficient documentation. While many property owners want to start cleaning the site immediately as a first step toward getting their lives back, that’s not what they should actually do. Instead, they should take extensive photos and videos of the damage, as well as record the serial numbers of any damaged equipment. It’s also crucial to retain samples of the affected materials, such as carpeting, curtains, or upholstery, since this also constitutes evidence.
Of course, it’s important to provide accurate information since misrepresenting the damage can also result in a denial. Along the same lines, make sure to classify what flood zone the property is in since getting this wrong can also increase the chances of a denial.
Another common reason insurance companies deny claims is that the property owner delayed reporting the damage. Other insurance companies require a waiting period and will deny claims that are submitted too soon, which is why it’s important to submit claims within the time window that the particular insurer specifies.
Insurance companies also consider how the property was maintained until the flood damage occurred when weighing a claim. If homeowners neglect to maintain the property, and this lack of maintenance contributes to the damage, the claim can be rejected.
Similarly, if homeowners fail to demonstrate that they had taken measures to prevent damage from occurring in the first place, it can be grounds for the insurance company’s denial. The flood insurance policy will specify a ceiling on the damages that the homeowner can expect to receive, and claims that exceed those thresholds will typically not be paid in full.
If this all sounds complicated, that’s because it certainly can be. One way attorneys can assist property owners is by translating the legalese of their policies so that they understand how their coverage works.
Sometimes, however, insurance companies utilize dubious practices and deny claims in bad faith. When these situations arise, attorneys have an even more important role to fulfill.
Insurers’ dubious tactics
Sometimes, insurance companies try to avoid paying valid claims by employing a range of bad-faith tactics. For instance, they might rush the investigation or neglect to do one completely before denying the claims. Alternatively, they might kick the proverbial can down the road over and over, delaying payment without a good reason. Some might make an initial offer that is lower than the policy specifies they should pay, given the damage that has occurred.
In my experience, however, those aren’t even the worst things that can happen. Some insurance company representatives might try to change the terms of their contracts in retrospect by providing incorrect definitions of key terms in the policies themselves. These new definitions would suggest that the company doesn’t owe anything, but the actual language itself — when properly understood — suggests they need to pay.
In some cases, insurance company representatives may even become unpleasant or aggressive in an attempt to make the policy holder withdraw their claim, which is when attorneys have a key role to play.
How attorneys can help in flood insurance denial cases
Attorneys can help policy holders in numerous ways. We can read people’s legal contracts and help them understand their coverage, as well as review their claims and ensure they are valid, given the terms of their policies.
Attorneys can also help property owners avoid costly mistakes. For instance, my team and I routinely help our clients document their damages and make their claims as strong as possible. We also pay particular attention to the time windows that policies specify and ensure the claim complies with them.
If a claim is denied, we guide people through the process of making an appeal. Being skilled in negotiation and persuasion, we also act as liaisons between our clients and the insurance companies, which tends to boost the settlements.
Finally, we understand the dubious tactics that insurance companies sometimes deploy. If we suspect bad faith, then we will investigate and gather evidence. This enables us to fight back against the insurers effectively, litigating in the courtroom if need be.
In short, attorneys ensure policy holders get fair treatment as well as the payouts they deserve.
Advancing justice through flood claims
When people lose their homes to flooding, they need to focus on their recovery, not reading legalese and filling out paperwork. Attorneys can provide the timely support flood survivors need to file the strongest claim possible at the exact right time and advocate for the policyholders in ways that maximize their chances of a positive outcome. For these reasons, helping people with their flood insurance claims is a fulfilling way for lawyers to obtain justice.
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