Homeowners insurance is necessary to protect your home and personal property in case of disaster. While mortgage lenders require coverage, homeowners also need insurance to repair or rebuild the property, cover personal liability, and replace stolen or damaged property. When homeowners apply for coverage, insurance companies look at several risk factors and deny coverage if the risk is too high.
Credit and Personal History
One reason for the denial of homeowners' insurance is based on the applicant's credit history. According to Realty Times, insurance companies have found that a credit report is an excellent predictor of a person's risk. They can establish the applicant's track record of paying bills on time and credit use by analyzing credit scores from the three credit bureaus. In addition to credit, insurance companies also look at the applicant's driving records and previously filed insurance claims to determine if they are a reasonable risk.
Location of Property
Insurance companies can deny homeowners insurance if the house is located in a high-risk area for weather or crime. A home located in an area prone to tornadoes, hurricanes, windstorms or hail may mean an increased risk of property loss and more money to settle those claims. Properties in high-crime areas may be at a greater risk for claims related to theft and vandalism, resulting in property loss or damage, according to Insurance Specialists. Even though the location cannot be changed, homeowners can take preventive measures, including installing an alarm or hurricane shutters, to decrease their risk.
Condition of Property
The home's condition may be another reason why an insurance company denies coverage to the applicant. Insurers can use a particular score, called PropertyPredictR, to evaluate the property and assess the risk for claims, according to Insure.com. Types of materials used in the house construction, along with the shape of the materials and the structure, determine the home's potential for insurance claims. Property condition also includes the overall appearance of the property and whether it is untidy or not. Moreover, insurance companies look at other risks for claims, such as owning a specific dog breed.
Age of Property
Some insurance companies are denying homeowners insurance coverage to owners of older homes because of the risks associated with antiquated electrical, plumbing, and other systems, according to Insurance Specialists. If homeowners can update the outdated or problematic systems or materials, they may satisfy the insurance company and secure the policy.
START WITH A FREE CONSULT: CALL US AT 833-7RIGHTS
If your insurance claim has been denied, you are not alone. We can help! Our firm has successfully represented both homeowners and business owners alike in countless wrongful claim denial cases. We are skilled at proving an insurance company has acted in bad faith and are committed to holding insurance companies accountable for their misconduct.
In bad faith cases, we can seek to recover the insurance payment due to you as well as interest, and sometimes, even punitive damages. We can explain in further detail what your options are at this time during a free case consultation.
YOU CAN OBTAIN A HIGHLY SKILLED INSURANCE LAWYER
If your insurance company has refused to honor your policy despite having a valid claim, you can recover damages based on "bad faith." At Dick Law Firm, PLLC, we are committed to fighting for the total compensation you deserve. When you retain our services, we fight to protect your rights as a policyholder.
Hiring a highly-skilled property insurance attorney will help by:
- Significantly increases the value of your claim
- Learning all of the ins and outs of your policy
- Helping you navigate the claims process and negotiations
- Validating the cause and extent of the damage
- Informing you if a claim denial is valid
- Notifying you of all relevant insurance laws
If you have been mistreated or wronged by your insurance company, you can count on us to do everything possible to rectify the situation. We aim to resolve a claim as efficiently and effectively as possible.
Please speak with our team
at 833-7RIGHTS today!