Can You Sue Your Insurance Company for Fire Claim Denial?
Many people throughout California are currently in the process of filing fire claims for benefits under their homeowner’s insurance policy, and some may be extremely disappointed and angry with the results. A California wildfire insurance claims attorney at Quincey Law can assist in enforcing your rights.
The insurance company cannot simply deny your claim for fire damage whenever they want. Any claim denial must be supported by the language of your policy and the facts. If the insurance company wrongfully denies your claim, you can file a lawsuit seeking to force them to cover your claim.
If your fire damage claim has been denied, or the insurance company will not offer you reasonable and realistic compensation, speak to a lawyer at Quincey Law. We know how to deal with insurance companies that may be giving you the runaround.
Your Insurance Company Is Not Always There When You Expect
When you have experienced a devastating event like a fire, you are expecting your insurance company to be there for you in your time of need. After all, you have paid your premiums, and you have a contract with the insurance company. Unfortunately, your fire claim may be denied under certain circumstances, forcing you to fight back. In this case, you would be able to sue the insurance company for breach of contract and also for other potential legal causes of action.
Your homeowner’s insurance policy states conditions under which the insurance company is required to cover fire damage to your home. The policy also contains a list of exclusions and other caveats that may mean that the insurance company could attempt to deny your claim. Just because your family has suffered a devastating event, such as a fire, does not mean that the insurance company will adhere to the language of the policy and/or interpret I correctly. Consequently, you may end up shocked when you receive a claim denial from the insurance company when you were expecting money.
You Can Sue the Insurance Company for Breach of Contract
Your homeowners’ insurance policy is a contract between you and the insurance company. In exchange for the premiums that you pay, the insurance company is supposed to pay you for the damages that are covered by the policy. The insurance policy explicitly states what will be covered, along with exclusions from coverage. Additionally, the insurance policy will also outline the requirements for filing a claim.
The insurance company paying your fire claim is far from a given. For example, Farmers Insurance has been reported to deny roughly 50% of fire insurance claims. Two other major insurance companies deny a similar percentage of claims. Some insurance companies have been known to cancel coverage unilaterally even after the policyholder has paid the premium.
You may be able to file a lawsuit against the insurance company when they have denied your fire claim. When they issue you a policy in exchange for your money, they take on contractual obligations to you. While they may be interpreting the contract in a certain way, the insurance company does not get the final say when they have denied your claim.
Even if the insurance company offers you money for your claim, it does not mean that you would receive enough money to pay for your full damages. Having your claim paid is a two-part challenge. First, the insurance company needs to approve coverage. Second, they would need to fully pay for your damages. Both of these aspects of a claim could require a legal fight.
You May Even File a Bad Faith Lawsuit
Since you are a first-party claimant, you may also be able to file a bad faith lawsuit against the insurance company. Bad faith lawsuits do not cover every single instance in which an insurance company denies a claim. They do cover situations in which the insurance company has used some type of wrongful conduct to deny your claim. In that case, not only could you force the insurance company to pay your claim, but you could also seek damages directly from them for their wrongful conduct. The insurance company may not only owe you financial costs and emotional distress, but they could also be ordered to pay punitive damages.
Contact a Southern California Insurance Claims Law Firm
An insurance claims lawyer at Quincey Law is just a phone call away when you find yourself in a difficult situation. Schedule a free initial consultation with an insurance claims attorney by visiting our website or calling us today at 866-945-9175.
Nicholas Quincey is the founder of Quincey Law, and has over a decade of experience of handling insurance claims denials and personal injury matters for people throughout California. We have pursued insurance bad faith claims for people involving life insurance, health insurance, homeowners and disability insurance. We also work with clients and families who need assistance filing and pursuing a personal injury matter. Learn more here.