One of the most stressful parts of homeownership is the knowledge that, when something goes wrong, you’re the one responsible for fixing it.
In the case of disasters like fire and windstorms, home insurance can alleviate a lot of those headaches, ensuring you get the money you need for repairs. But in reality, a large number of insurance claims are denied, adding yet another layer of stress and making it unclear how to get what you're owed.
Here’s the good news: If your provider does reject a claim, you have multiple tools at your disposal, each with their own benefits and trade-offs. Below, we’ll outline exactly what to do if your home insurance claim gets denied and how to prevent rejections in the future.
Figure out why your claim was denied
Rejected claims are more common than you may think. According to a study by Weiss Ratings, America’s largest insurers reportedly denied about 47.5% of all home insurance claims in 2023 for a variety of reasons.
If your claim is denied, your first step is to understand why it happened. Your provider should explain the reasons explicitly in writing, but if it does not, you should request a written explanation immediately.
Here are some common reasons for rejections:
- The damage was not from a “covered peril," meaning it was caused by something not included in your policy.
- There was “no policy in force,” meaning your policy was inactive due to late or missing payments.
- Your claim included missing or incomplete information.
- You missed the filing deadline.
- Your claim was deemed fraudulent by your provider.
- You made significant repairs preemptively, before the damage was inspected.
- The damage was deemed to be intentional or caused by negligence.
As you can see, denials can stem from major issues, such as unpaid premiums or allegations of fraud, as well as simple mistakes, including forgetting a few sections of paperwork. That’s why it’s important to know every reason your claim was rejected before you set out to resolve the issue.
Contact your insurer
Once you know why your claim was denied, the next step is contacting your insurer. You should come to the conversation prepared, both with information about the rejection and about your policy in general — including what kinds of damages are covered, the amount you’re covered for, and any special stipulations that may have affected the outcome.
This is where preparation goes a long way. According to the Insurance Information Institute, fewer than 50% of homeowners keep a home inventory to track belongings and missing items for potential insurance claims. This kind of knowledge, however, can really pay off when you speak with your insurer. Ideally, it’s best to create a home inventory whenever you move or make a major purchase, so you’ll be prepared if and when you need it.
After the initial conversation, you’ll likely get more information about why your claim was rejected. If you still believe the claim was wrongly denied, you should file an appeal through your insurer’s internal process. It’s best to exhaust all options with your provider before seeking help elsewhere.
Seek help outside of insurance
There are also outside resources you can turn to for help with a denied claim. The simplest option — and therefore the first to consider — is to hire a public adjuster.
Unlike adjusters working for insurance companies, public adjusters work for you and should have your best interests in mind. They independently evaluate your property, review the damages and give their assessment of what a fair claims payout should be.
If your provider decides to pay your claim after that, your adjuster will take a portion of the payout — typically between 5% and 15% — as a fee for the services. Since insurance can get complicated, it’s often worth hiring a public adjuster before you initially file your claim, especially after a major disaster that requires costly repairs.
If hiring a public adjuster proves unsuccessful or doesn’t feel like the right option, you can also contact your state’s insurance department, which can investigate the situation and determine whether your provider acted unfairly.
The National Association of Insurance Commissioners keeps an updated list of each state’s contact information so you can easily find the best way to reach it.
If all else fails, you can hire a lawyer and file a lawsuit. This is usually considered a last resort, as it’s the most time-consuming and expensive option, but it can also be tremendously helpful. You’ll have an expert on your side looking through the whole case and fighting to get you what you’re owed.
These lawsuits often involve “bad faith” claims, which allege that your provider knowingly engaged in bad behavior that led it to reject your claim. If you win, your lawyer will typically take a contingency fee, often between 33% and 40% of the settlement as payment.
