Homeowners insurance is a safety net for if something happens. Your policy is supposed to protect your assets by covering not only your property, but also your legal liability for injuries to others while on your property.
But what happens when your insurance company denies your legitimate claim? In insurance terms, bad faith is when an insurance company acts in a way that violates its contractual obligations to the policy holder. This can include refusing to honor a valid claim, purposely failing to investigate a claim, concealing contractual language, and unreasonable delaying payment of benefits.
As attorneys, we receive calls from claimants when insurance companies deny their claims. Most have no idea why their claims were denied. Call us to discuss if your denial was in bad faith.
Keep in mind, it’s important to read your policy to ensure you have proper coverage. Make sure you’re covered for your home, other structures on your property, personal property in and around your home, legal liability, medical payments, and additional living expenses if you have to rent a place during home repairs.
However, be aware that your policy may have exclusions, meaning it may not cover:
- Flood
- Earthquake, landslide, or mudslide
- Sewer back up
- Identity theft
- Dog bites or attacks
- Swimming pools or trampolines
- Operating a business out of your home
You may have to purchase a separate policy to cover these events.
How about if you’re renting? Renters insurance covers your personal property and liability. However, renters policies usually don’t contain dwelling coverage, as the rental company or landlord is responsible for insuring the building or structure.
Whether you have a homeowners policy or a renters policy, be sure to maintain your home, pay your premiums on time, and take an inventory of the items in your home should something happen. We’ve seen numerous instances where fires occur and the homeowners or renters have a policy but don’t have an inventory of what was in the home.
If you have been injured on someone’s property, or if your insurance company has denied your legitimate claim, please reach out to us today.