Homeowners Insurance – Common Issues
The most common problems involving homeowners insurance involve the following issues:
- Whether the loss is covered under the policy.
- Whether all or part of the loss is subject to an exclusion or dollar limit in the policy (such as an exclusion for mudslides, settlement, dry rot, negligent construction; or a deductible or cap on the coverage.)
- Whether the claimants’ scope of repairs or repair bids are excessive.
- Whether the claimants are seeking repairs that would constitute “betterment” of the condition of the property from its pre-damage condition according to the “code upgrade” or “replacement cost guarantees” set forth in the policy.
- Whether the insurer is entitled to take a depreciation credit on lost or damaged dwelling or personal property based on its pre-claim condition.
- Whether the agent or broker who sold the policy negligently underinsured it.
- Whether the company misrepresented the coverage that would be provided, through misleading advertising or promotional statements or material.
- Whether claimants failed to comply with policy requirements such as the filing of formal proofs of loss, the submission of required documentation or the meeting of time deadlines set forth in the policy or under the laws of the particular state.
- Whether the claimants breached their “duty to cooperate” with their adjusters, investigators or other company representatives and thereby relieved the company of its obligations.
And many more. Disasters are almost as unexpected as the reasons behind a homeowner’s claim denial.