How to Avoid Homeowners Denied Claims

You can’t prevent the next fire, accident, or windstorm from harming your home. But understanding how to avoid homeowners denied claims could help you get back on your feet fast when the unthinkable happens. 

Understand and maintain your policy, and you’ll know just what is (and is not) covered. You’ll also have a clear game plan when a covered incident takes place. 

No one wants to think about terrible incidents ending in homeowners’ claims. But setting aside planning time now could prevent big headaches later on.

Understanding Why Claims Get Denied 

No studies have examined how often homeowners face denied claims. But anecdotally, it seems likely at least some people are disappointed when working with their insurance companies. 

One insurance company says claims are denied for the three following reasons:[1]

1. The terms of the policy didn’t cover the loss.
2. A covered loss didn’t cause the damage.
3. The policy wasn’t in effect when the event took place. 

You can prevent some of these common issues and ensure your homeowners claims aren’t denied.

Key Facts

Ways to Avoid Having Your Claim Denied 

A few simple steps can help you avoid an annoying (and expensive) claim denial. And thankfully, you don’t need any special skills or tools to take action today. Here’s what we recommend: 

Read & Understand Your Policy 

Two-thirds of Americans don’t know what’s in their home insurance policy, researchers say.[4] If you’re not sure what’s covered, you could file unneeded claims that will never be successful. And, you may not have the coverage you need for problems that are common in your area. 

For example, you may believe that storm-related basement flooding is covered in your policy, so you submit a claim. It’s denied because the only water damage that is covered in your policy must relate to a broken pipe. 

If you read your policy carefully, you’d never submit claims that won’t succeed. And you could ask about riders (like flood insurance) to further protect your home. 

Maintain Your Property 

Your homeowners policy should protect you from unexpected events, not negligence or wear and tear. If you don’t keep your home in good working order, it’s hard for the insurance company to determine whether a problem is covered. 

For example, about 30% of lowest-income homeowners spent nothing on home maintenance or improvement in 2019.[5] If one of these homeowners had a leaky roof after a storm, the company could say delayed repairs — not the storm — were the cause of water intrusion. 

Keeping your home in good shape can make covered issues easier to spot. And they could ensure that your home isn’t damaged unexpectedly by things your policy won’t cover. 

Provide Accurate & Complete Information 

Forms and interviews are common parts of the insurance application process. You explain what you have, and the organization writes the policy accordingly. Be transparent, honest, and communicative during this process. 

Lying on your insurance application could cause problems during the claims process. For example, if you claim to have a 150-inch flatscreen television on your application, but after a fire, agents can find no evidence of such a machine, your entire claim could be at risk. 

Experts say insurance fraud costs consumers $308.6 billion yearly.[6] Lying isn’t a victimless crime. Never falsify anything on your application documents, and you won’t have to keep lying when you file a claim. 

Get Familiar With Policy Exclusions & Limits 

Homeowners insurance policies cover specified risks (also known as perils). While plans can vary, most come with exclusions. 

For example, the Texas Department of Insurance says most policies don’t cover the following problems:[7]

• Flooding due to storms
• Continuous water leaks (like a slow drip from a pipe)
• Vermin or insect infestation 
• Wear and tear
• Earthquake-related damage
• Landscaping damage caused by wind or hail

Knowing which situations are covered can help you file appropriate claims. 

Report Incidents & Damages Quickly 

Read your homeowners insurance policy carefully, and you may spot key time frames. For example, your company may require some kind of contact within a few days of a qualifying event. Others may specify a form you must fill out following an event.

When something happens to your home or possessions, your thoughts are scattered and chaotic. If you let these feelings take over, you could miss your reporting window. Worse yet, if you don’t read your policy, you may not even know that such a window exists. 

Keep Detailed Lists 

An accurate, up-to-date home inventory is a critical part of filing a successful homeowners claim. You can (and should) create this document long before you need it. And about half of Americans don’t have records like this.[8] 

To create a home inventory, follow these steps:

1. Choose one room (like your kitchen). 
2. Open a spreadsheet for that room. 
3. Choose one item in the room, detailing when you bought it, how much it cost, the make and model, and other details. 
4. Repeat with every item in the room. 
5. Take photos of the room, and make sure to open drawers and cabinets.
6. Make copies of any receipts for the items you’re documenting. 
7. Store your photos, receipts, and spreadsheet on the cloud or another spot you can access easily. 

Go room to room in your home, repeating these steps. It will take time to create a complete record. Don’t rush. 

If you buy new items, update your photos and spreadsheet accordingly. Updates will be easier to make than the process of documenting each room. 

If you must file a claim for something like a kitchen fire, you’ll have detailed information about what you had, which your insurance company can use to determine what you’ve lost. 

Work With a Professional 

Sometimes, despite your plans, you must file a claim with your insurance company. When that happens, a professional can be a great help.

A public adjuster can work on your behalf, examining what you lost and comparing it to the rules specified in your policy. This report could ensure your claim moves forward without delay. 

Frequently Asked Questions About Avoiding Homeowners Denied Claims

We’ve compiled some of the top questions people ask about denied claims for homeowners insurance. 

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Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.