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In 2023, home insurers across the U.S. denied an average of 37% of claims, leaving many homeowners struggling to recover. According to Newsweek, Farmers Insurance, which holds a 14.9% market share in California, had the highest rate of closures without payment, denying nearly 50% of wildfire damage insurance claims nationwide. For Los Angeles residents affected by the recent wildfires, this paints a troubling picture. Especially, when the costs for the wildfires burning across LA are estimated to be between $250 and $270 billion dollars.

Insurance denial after a wildfire accident? Steps to take immediately can make all the difference in protecting your rights and pursuing the compensation you deserve. Whether it’s understanding why your claim was denied, gathering evidence, or seeking professional assistance, you have options to fight back.

Rejection doesn’t have to mean the end of your recovery journey. Keep reading to learn how to respond effectively and take control of your situation today.

Understand Why Insurance Claims Are Denied

Insurance claim rejection happens more often than most people think, and wildfire-related claims are no exception. Here are some common reasons:

  • Policies exclude certain types of wildfire damage
  • Insufficient documentation provided to support the claim
  • Delayed filing of the claim beyond the policy deadline
  • Misinterpretation of policy language by the insurer or policyholder

Another significant factor is that some insurance companies tend to act in their own interest. This could include disputing claims to avoid high payouts, which is especially common after widespread disasters like wildfires.

For instance, a CBS report found that about 1,600 policies in Pacific Palisades were dropped by State Farm in July after previous wildfires, leaving homeowners vulnerable.

Gather All Necessary Documentation

Wildfire damage insurance claims require detailed documentation, and without it, your case could be dismissed outright. Insurers often cite incomplete records as a primary reason for denial. You can strengthen your claim by organizing critical evidence that demonstrates both the extent of the damage and the validity of your policy.

Start with these essential documents:

  • A copy of your full insurance policy, including any amendments
  • Photos or videos showing the damage to your property
  • Receipts for temporary repairs or living expenses incurred due to displacement
  • Statements from contractors or inspectors about the extent of the damage

Next, create a timeline. This should include the date the wildfire occurred, when you discovered the damage, and the date you filed your claim. Be specific, as timelines can often clarify whether filing deadlines or procedural requirements were met.

For example, if your policy requires claims to be filed within 30 days of an incident and you submitted it within 25 days, having a documented timeline will help counter any false claims by your insurer that you missed the deadline.

Keeping your paperwork in order could be the difference between a payout and an outright denial.

File an Appeal with Your Insurance Company

Appealing insurance denial is a critical step if your wildfire damage insurance claim is rejected. While rejection can be discouraging, many denials are overturned during the appeal process. It’s important to act quickly and follow the correct procedures.

Steps to appeal a denial:

  1. Review the denial letter to identify the exact reason for rejection
  2. Contact your insurance company to confirm the appeal process
  3. Submit additional documentation to address the reasons for the denial
  4. Write a concise, professional appeal letter explaining why the claim should be reconsidered

Your policy’s language plays a significant role here. Insurers often rely on technicalities to deny claims, but understanding your policy’s terms can help you argue effectively. For instance, if your policy doesn’t specifically exclude wildfire damage but your claim was denied on this basis, highlight this discrepancy in your appeal.

Stay persistent. Denials can sometimes seem arbitrary, but thorough appeals have overturned thousands of rejected wildfire accident claims across California.

Seek Help from Professionals

Sometimes, even the most thorough appeal isn’t enough. In such cases, professionals like public adjusters and attorneys can provide the support you need. These experts specialize in dealing with insurers and know how to navigate the challenges of wildfire accident claims.

Public adjusters are independent professionals who assess your damage and negotiate directly with the insurance company on your behalf. They can:

  • Evaluate the true extent of your wildfire damage
  • Ensure all necessary documentation is included
  • Advocate for a fair settlement based on policy terms

When should you consult an attorney? If your claim is repeatedly denied without valid reasons, or if your insurer engages in bad faith practices (such as unreasonably delaying your payout or misrepresenting policy details) legal action might be necessary.

Consider Additional Legal Options if Necessary

If all else fails, further legal action might be required to secure compensation for your wildfire damage. Immediate steps for denied claims often include filing a bad-faith insurance lawsuit.

Signs of bad faith practices include:

  • Refusing to communicate about your claim in a timely manner
  • Denying claims without conducting a proper investigation
  • Offering significantly less than the value of your damages

Filing a lawsuit could compel your insurer to act fairly and could even result in additional damages awarded to you for the inconvenience caused.

Joining a class-action lawsuit is another option. This is particularly useful when multiple victims face similar issues with the same insurer. By pooling resources, victims can hold large companies accountable for unethical practices.

Keep in mind, the time to act is limited. In California, you generally have two years from the date of denial to file a lawsuit. Acting quickly protects your rights and ensures you don’t miss out on the compensation you’re entitled to receive.

Insurance Denial After a Wildfire Accident? Steps to Take Immediately

Insurance denial after a wildfire accident? Steps to take immediately can feel overwhelming, but knowing your rights and acting quickly can make all the difference. By documenting damages, filing appeals, and consulting professionals, you can fight back against unfair rejections and secure the compensation you deserve.

At Solimon Rodgers, we specialize in helping wildfire victims rebuild their lives. With decades of experience and a proven track record, we ensure insurance companies honor their commitments. We offer free consultations and work on a contingency basis, so you don’t pay unless we win.

Schedule your consultation today and let us help you protect your future.

Call (844) 774-3577 or visit www.KingsofWC.com to learn more.

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