If you are like most homeowners in the Coral Springs, Florida, area, you may have gone your entire adult life without ever needing to file a single homeowners insurance claim. While you pay your premium diligently every year, you may have never wound up in the scenario where you required the coverage to pay for damage to your property or an injury to someone visiting you.
Then, you get hit by a big storm. High winds, hail or water incursion could all cause substantial damage to your home. In some cases, you may need to repair or replace a roof. Other times, more substantial work is necessary after serious storm damage. Some people even need to rebuild their entire home.
If you paid for insurance for years, you probably expect that the company will write you a check when you need their help. Unfortunately, many people find out the hard way that insurance companies can and do deny claims in bad faith when people need their coverage the most. They can also delay sending out payment on a claim or offer insulting low settlements for homeowners in need.
Your homeowners policy should give you protection against hurricanes and winds
One of the most common tactics that insurance companies will try when initially denying a claim that should receive coverage is to claim that the cause of the damage is outside the scope of the policy’s protection.
For example, insurance companies may claim that their policy does not protect certain parts of the structure in the event of a hurricane or severe windstorm. However, there are state laws that mandate coverage for damage related to hurricanes and wind storms. You should carefully review your policy before a claim to familiarize yourself with the kind of coverage you have.
The company could try to offer you a ridiculously low settlement
Sometimes, to mitigate the cost of a valid claim, an insurance company will offer a low settlement, knowing that the policyholder is in a difficult financial situation. People will jump at a compensation offer when they need immediate help, which could leave them responsible for all future expenses, even if their policy should have paid more.
You can take action after a bad faith claim denial
When people receive notice from their insurance company that it will not pay for repairs to a home, too many people simply give up, assuming that the denial of their benefits is legal and appropriate. However, many people experience what is known as a bad-faith insurance denial.
A bad-faith denial is when an insurance company knowingly denies a claim that should receive coverage under the terms of a policy. Although you will likely have to go to court to resolve a bad faith claim denial, it is possible for you to secure the compensation you need from your insurance carrier by taking appropriate actions immediately after the denial of your claim.