House Fire Insurance Claim Denied In Massachusetts: Here's Why
Sell My House 7
House fires are one of the most devastating things that can happen to a family. In addition to the emotional trauma, the significant financial loss comes with rebuilding your home. Many people think that their homeowner's insurance will cover these costs, but unfortunately, this is not always true. Many insurance companies will deny a fire insurance claim if they believe that the homeowner was negligent.
Upfront we want to tell you selling your house after a fire is a option we're extending to you if you need the cash and are ready to move on with life.
3 Tips To Increase The Likelihood Your Fire Insurance Claim Doesn't Get Denied In Massachusetts
Make sure your home is properly insured:
The first step in making sure your fire insurance claim is not denied is to ensure that your home is properly insured. Most homeowner's policies cover fire damage, but the amount of coverage you have may vary depending on the company you are guaranteed with and the type of policy you have. Therefore, it is essential to review your fire insurance policy and have enough coverage to rebuild your home if it burns down.
Follow the safety guidelines laid out by your insurance company:
To avoid having your fire insurance claim denied, it is essential to follow the safety guidelines laid out by your insurance company. These guidelines may vary depending on the company. Still, typically they include things like having a working smoke alarm, having a fire extinguisher, and keeping flammable materials away from heat sources. If you do not follow these guidelines and your home catches fire, your home insurance company may deny your claim.
Report any fires immediately:
If you experience a house fire, it is essential to report it immediately. It will allow your insurance company to begin its investigation into the cause of the fire and determine if you are eligible for coverage. Additionally, it is essential to keep all receipts and documents related to the fire as you may need them for your claim.
Why Property Insurance Claims Are Denied In Massachusetts?
There are many reasons why insurance companies deny fire claims. The most common reason for the house fire insurance claim to be denied is that the damage was caused intentionally or by careless behavior.
Here are some of the common reasons why home fire insurance claims get denied:
The homeowner has not kept up with their insurance premiums:
If the homeowner has failed to keep up with their premiums, the insurance company can deny coverage for any property damage claims. If you miss one payment, it will cancel your coverage immediately. If you don't pay within 30 days after being notified by the insurance company, it will terminate your ultimate insurance coverage.
You should also know that sometimes homeowners forget to renew their policies before they expire or choose not to continue them, believing that they won't suffer any losses in the coming year. However, they fail to realize that when they don't renew their policies. As a result, they stand a much higher risk of having their claims denied since they don't have coverage.
The loss is excluded from coverage:
Many policies have exclusions for certain types of losses, such as damage caused by vermin or acts of war. It can also include maintenance-related issues, such as a pipe bursting due to freezing temperatures in winter. The best way to avoid this type of denial is to understand your fire insurance coverage and make sure that you keep up with routine maintenance tasks around your home.
The homeowner's deductible is higher than the amount of loss they're claiming:
It is common for insurance companies to deny a homeowner's claim if the amount of damage is less than the homeowner's deductible. For example, if a homeowner has a $500 deductible, but their damages only total $400, the insurance company may deny their claims.
The homeowner intentionally set the fire that caused the damage:
If an insurance company suspects that a homeowner intentionally set the fire that damaged their home, then this may cause them to deny the homeowner's claim. To determine if arson was involved in a particular incident, insurance companies often conduct interviews with local authorities and firefighters who responded to the fire scene. Insurance companies also review other evidence and information regarding how and where the fire started when determining whether or not arson was involved.
The homeowner's property was damaged due to a criminal act (arson or vandalism).
In this case, the cause of the fire is usually straightforward, and there's little room for interpretation on the part of the insurance agent. However, just because a criminal act caused property damage doesn't mean your policy didn't cover it. For example, it may substitute you if a thief steals a laptop and then damages furniture in your home while he's breaking in.
What Circumstance Would A Property Insurance Claim Be Rejected In Massachusetts?
1. Fraud
2. Negligence and carelessness
3. Outside of the policy coverage
4. Damage due to wear and tear
5. Intentional damage
6. Contaminated property
7. Undisclosed property
8. Catastrophic event
Does Home Insurance Go Up If Claim Is Denied In Massachusetts?
Yes, you might see an increase in your homeowner's insurance rates. However, if you are the only one in your neighborhood to file claims, it will likely raise a red flag for your insurance adjuster, and they might adjust your premiums to reflect that.
However, if you were denied because of a natural disaster or something out of your control, filing another claim, later on, shouldn't have any impact.
Why Can An Fire Insurance Claim Be Denied In Massachusetts?
1. Did you wait too long to file your claim? You must file fire insurance claims as soon as possible after the fire, or you might lose your right to compensation.
2. Did you fail to provide proof of your loss? Document your damages with photos and receipts showing what was lost in the fire.
3. Did the fire happen off-premises? If the fire started at a location other than your home. And then spread, the damage may be excluded from coverage.
4. Was the fire caused by an intentional act? If you or someone else did something that caused the fire, such property damage is not covered.
5. Was the fire due to a poor maintenance issue? If it's determined that a failure to maintain a part of your home correctly caused the fire, it can deny coverage.
6. Was the fire related to illegal acts or activities? If it's determined that illicit drugs were involved in starting the fire, you will not be compensated for any resulting losses.
Which Is A Common Reason Why Insurance Claims Are Rejected In Massachusetts?
Most commonly, insurance companies deny claims for one or more of the following reasons:
1. The policy does not cover the damage that occurred.
2. The policy is expired or canceled before the damage occurs.
3. The amount of damage falls below your deductible.
4. The damage was intentional instead of accidental.
5. You failed to meet the requirements of your policy, such as properly maintaining your home (for property insurance) or seeking medical attention promptly (for health insurance).
6. There is evidence that you have filed fraudulent claims in the past, primarily if they were related to this same incident or type of loss.
What Could Cause A Denial From An Insurance Company In Massachusetts?
A homeowners insurance policy typically covers the cost of damages or losses to your personal belongings when it comes to fire damage. However, here are some of the common reasons why an insurance company might deny a fire damage claim:
- The damaged property was not listed in the policy.
- The damages were caused by something listed as an "exclusion" in your policy
- Your liability coverage limits have been reached
- You did not file a claim within the policy time frame
Three Main Reasons Why An Insurance Claims Get Denied In Massachusetts
Failure to pay premiums:
If you did not keep up with your payments, the insurance company might refuse to pay for any damage incurred on your property.
Failure to disclose pertinent information:
If you withheld any information about your property or yourself when you applied for insurance, the insurance company might refuse to pay for damages.
Unintentional misrepresentation of facts:
It can happen if you accidentally misspelled the name of your street or forgot the exact square footage of your home; the insurance company can deny a claim if it finds that you made a mistake in your application.
Can An Insurance Company Decline A Claim at Will In Massachusetts?
Yes. An insurance company has the right to deny your claim, but there are laws about the denying claims process. Your insurance company must follow these laws to avoid potential litigation. For example, if your claim was denied due to a mistake on the part of your insurance agent, you might have grounds for a lawsuit against them.
How Do You List Items On An Home Insurance Claim In Massachusetts?
You need to list every item in your home that was destroyed or damaged in the fire. Even if something seems trivial — an old backpack or a pair of cheap gloves — it needs to be listed. Why? Because your insurance company will likely claim that if it's not on your list, it wasn't lost or destroyed in the fire.
Additional Resources
- The Insurance Process After A House Fire
- Dealing With A Difficult Insurance Adjuster's After a House Fire
- House Fire Insurance Payout
- How Much Is Fire Insurance A Month
- House Fire Insurance Got Denied
- What You Can and Can't Do With The Extra Money From The Insurance Claim
- What Happens If You Have a House Fire But I Have No Insurance