How to Appeal a Homeowners Insurance Denial
Had your homeowners insurance claim denied? You're facing an uphill battle. According to National Mortgage News, the 13 largest homeowners insurers denied 47.5% of claims in 2023. This guide shows you how to fight back.
Key Statistics: Homeowners Insurance Denials
- 47.5% denial rate — 13 largest homeowners insurers in 2023 (National Mortgage News)
- 70.5% denial rate — Farm Bureau Property & Casualty, highest among major insurers (Insurance.com)
- 5.3% of homes — Percentage with a claim filed in 2023 (Insurance Information Institute)
- 63% receive full payout — Of approved claims (Policygenius)
Why Homeowners Insurance Claims Get Denied
According to the Insurance Information Institute (III) and industry analysis, the most common denial reasons include:
Policy Exclusions (~33% of denials)
Flood, earthquake, earth movement, and wear/tear are typically excluded. Check your policy for specific exclusions.
Late Reporting (~15% of denials)
Most policies require prompt reporting of damage. Waiting too long can result in denial.
Insufficient Documentation (~12% of denials)
Lack of photos, contractor estimates, or proof of loss. Document everything before and after damage.
Failure to Mitigate (~8% of denials)
You're required to prevent further damage (tarping a roof, stopping water flow). Failure to do so can result in denial.
Deductible Issues
Damage below your deductible (often 2-5% of dwelling value for wind/hail) won't be paid. This isn't technically a denial but a policy feature.
Denial Rates by Insurance Company (2023)
| Insurance Company | Denial Rate |
|---|---|
| Farm Bureau Property & Casualty | 70.5% |
| Lemonade | 60%+ |
| American Bankers Insurance (FL) | 51.2% |
| USAA / Farmers / State Farm | ~50% |
| Travelers / Chubb | ~6% |
Step-by-Step: How to Appeal a Homeowners Insurance Denial
Review Your Policy and Denial Letter
Read your policy carefully to understand what's covered and excluded. Compare this to the denial reason. Many denials cite exclusions incorrectly or misinterpret policy language.
Document Everything
Take photos and videos of all damage. Get multiple contractor estimates. Keep receipts for temporary repairs and living expenses. The more documentation, the stronger your appeal.
Get an Independent Inspection
Hire a public adjuster or independent contractor to assess the damage. Their estimate may differ significantly from the insurer's. According to the III, claims handled by public adjusters often result in higher settlements.
Submit a Formal Written Appeal
Send your appeal via certified mail. Include all documentation, contractor estimates, and a clear argument addressing the specific denial reason. Request a detailed explanation if you don't understand the denial.
Request Appraisal or File a Complaint
Most policies include an appraisal clause for disputed amounts. If your appeal is denied, file a complaint with your state insurance commissioner.
Sample Homeowners Insurance Appeal Letter
Frequently Asked Questions: Homeowners Insurance Denials
What percentage of homeowners claims are denied?
According to National Mortgage News, the 13 largest homeowners insurers denied 47.5% of claims in 2023. Some insurers deny over 70% of claims.
Can I hire a public adjuster?
Yes, public adjusters work on your behalf (not the insurance company's) to negotiate your claim. They typically charge 10-15% of your settlement but often secure higher payouts.
What if my claim is for flood or earthquake damage?
Standard homeowners policies exclude flood and earthquake damage. You need separate policies for these perils. Flood insurance is available through the National Flood Insurance Program (FEMA).
How do I file a complaint against my insurer?
File a complaint with your state insurance commissioner. Find your state's department at NAIC.org. You can also consider legal action for bad faith claims.
Related Appeal Guides
About This Guide
This guide is provided for educational purposes only and does not constitute legal advice. Statistics cited are from publicly available sources including the Insurance Information Institute, National Mortgage News, and NAIC data.
For complex claims or suspected bad faith, consider consulting with a property insurance attorney.