Understanding Fire Insurance Policies: What Homeowners Need to Know
It is crucial that you know as much as possible about your fire insurance policy, especially when you need to file a claim. The fire insurance claims attorneys at Quincey Law can help you deal with the insurance company when you are having any difficulties.
When you have purchased a homeowners’ policy from an insurance company, you have a contract. You and the insurance company have obligations under the terms of the contract. The insurance company cannot ignore your rights by wrongfully denying your claim or paying you too little. However, you must also follow your own obligations in filing a claim.
Schedule a free initial consultation with the insurance claims lawyers at Quincey Law to discuss your fire insurance claim or the denial of one that you have already filed. We can help you take on a big business insurance company that is not upholding its end of the bargain with you.
A Fire insurance Policy Is a Contract
When you purchase an insurance policy from a homeowners’ insurance company, you have entered into a legally binding contract. Your obligation is to pay your premiums and follow the terms of the policy. The insurance company’s requirement is to pay for damages that are covered by the terms of the policy. When the insurance company does not cover the damages as they are supposed to, they have breached a contract that you have with them. Here, the exact language of the insurance policy matters because a Judge or jury would interpret the contract if you filed a lawsuit.
Your Fire Insurance Policy May Contain Exclusions
Any type of insurance policy will contain “fine print.” There is a broad statement of what damage would be covered under the policy, but then there are also paragraphs that could identify things that are excluded. For example, an insurance policy may exclude damage that they claim is caused by lack of upkeep to the home. Homeowners’ policies could also exclude damages that are caused by electrical issues that lead to a fire. An insurance company may also not cover damages from fires that they believe have arisen from activities outside of what would normally occur in the home.
You Need to Follow the Policy’s Procedures to File a Claim
The insurance policy imposes obligations on you for how you are supposed to file a claim. Typically, you would need to provide a certain amount of notice to the insurance company of the damage. There may also be things that you would need to submit with your claim in the format required by the insurance company, including:
- A report from the fire department
- Photographic evidence
- An inventory of your possessions in your home
- Estimates to repair or rebuild from the fire damage
- Proof of your ownership of the damaged items
Insurance companies have a reputation for being very particular when the requirements for filing a claim are not met. Their denial of your claim could mean that you do not receive any compensation, or the check that you receive is significantly delayed.
Having an Insurance Policy Is No Guarantee That Your Claim Will Be Paid
Insurance companies can and do deny claims for fire damage. Unfortunately, it happens far more than you think. For example, Farmers Insurance, one of the largest companies in California, is reported to deny roughly 50% of claims for fire damage. The insurance company may claim that you failed to properly follow the procedures. In many cases, the insurance company will argue that your claim falls under a policy exclusion.
You Can Sue the Insurance Company if They Wrongfully Deny Your Claim
The insurance company does not necessarily get the final say when they have denied your claim. Since your insurance policy is a contract, you have the right to sue the insurance company for breach of contract. A Judge or jury could force the insurance company to cover your fire damage if it is provided by the terms of your policy and does not fall under an exclusion.
Depending on the facts and circumstances, you may even be able to file a lawsuit directly against the insurance company for damages beyond just your claim. Since you are a first party claimant, you may be able to file a bad faith lawsuit. If so, you may qualify for damages in addition to forcing the insurance company to cover your claim.
Contact a Southern California Insurance Claims Law Firm Today
If you are having difficulty with the insurance company after your home has sustained fire damage, reach out to the experienced insurance claims lawyers at Quincey Law today. You can schedule a free initial consultation with one of our fire insurance claims attorneys by 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.