Insurance Claim Denied

5 Reasons Why Your Insurance Company Denied Your  Commercial Property Damage Claim

  • Failure to Mitigate Damage

    A sudden release of water is usually a covered cause of loss under your property insurance policy.  If you have water damage caused by a burst pipe mitigate your damage quickly.  If you fail to mitigate the damage, your claim may be denied.  

  • Failure to Properly Maintain the Property

    A commercial building may have a hidden leak that you aren’t aware of until you receive your higher than normal water bill.  If the water has been trickling down for a month then you can expect extensive damage.  If the insurance company inspects the damage and determines that you failed to properly repair a hidden leak they can deny coverage. 

  • Failure to Submit a Sworn Proof of Loss

Insurance companies may require a Sworn Proof of Loss be completed before paying a claim.  If one is requested then you must fill it out, sign and have it notarized. The Proof of Loss is your detailed statement of the items that were destroyed or damaged, the details surrounding the claim event, and the value of the items damaged during the claim event.  If you fail to complete the Proof of Loss upon request, your could be denied.

  • Failure to Submit to an Examination Under Oath

    The events that lead to your property damage are not always clear.   Insurance adjusters may request to take your recorded statement before they can determine coverage.  In instances of theft and arson an EUO is quite common.  Insurance investigators are hired by the carrier when there are possible instances of fraud.  Property damage claims for commercial and residential may also require and Examination Under Oath.  If you fail to submit to the examination, the carrier can deny your insurance claim.

  • Failure to File Your Claim Within the Limitations Period

    In Texas, a property owner has 2 years to file a claim for property damage.  If you have timely filed a claim and it was denied by your carrier, the limitations period begins when the insurance company closes your claim file.  You should mark your calendar for the 2 year anniversary of your claim denial.  You don’t want to loos your right to sue because you missed a deadline.

  • If there is a storm that causes roof damage and you fail to file your claim within 2 years of the date of the storm, your claim will be denied.  If you hire a property damage insurance attorney to manage your claim you won’t have to worry about missing deadlines and losing money.

Nyanza Moore