As owners of property insurance, or any type of insurance for that matter, we ask only one thing; that the company pay out when required. For those who have been keeping up to date with the industry, you’ll know that some companies haven’t been holding up their end of the bargain.

Has your insurance claim been denied? If so, you might be wondering what happens next. You don’t have to just deal with the consequences of this decision, but you will need to act quickly. Below, we’ve got the advice you need.

Step 1: Assess the Reason for Denial

First and foremost, what reason did the insurance company give for the denial? In truth, there could be any number of reasons they provide. Common examples include;

  • Your policy doesn’t cover this type of damage
  • The insurance policy wasn’t active at the time the damage was caused/occurred
  • There was a claim filing error
  • A provision of the contract had been breached by the policyholder

In some cases, and hopefully yours, there can be a misunderstanding and clearing up the facts will allow for the correct claim to be paid. With a simple rebuttal and sufficient evidence, this should solve the issue.

If the provider is claiming that the damage isn’t covered, you breached a provision within the contract, or the contract wasn’t active, you’ll need to assess your policy documents.

Step 2: Review Your Policy Documents

During this stage, you’re essentially trying to work out whether or not the provider acted in good faith. If you haven’t heard this phrase before, ‘good faith’ in insurance essentially means that the company must meet their requirements and investigate claims when the worst-case scenario occurs for the homeowner. After investigating, the proper value for damages should be awarded.

If you review the policy documents and still believe that the provider is the one in the wrong, it’s time to bring in legal assistance.

If you don’t know where to look, the ‘Exclusion Clause’ will provide a full list of events that aren’t covered by the policy. These days, flooding and earthquakes are two events that are no longer covered by property insurance.

At Cannella Legal, we have the experience and tools you need to compile a strong case (more on this later).

Step 3: Bad Faith Denials

When an insurance company makes a ‘bad faith denial’, this suggests they didn’t have valid grounds and they’re actively trying to avoid their obligation to you. Depending on your state, policyholders will have the right to sue for breach of contract and they may even have an opportunity to sue, as a tort, for bad faith insurance denial.

Step 4: Don’t Be Afraid to Ask for Help

First, your home was subjected to damage. Second, the insurance company you trusted refused to offer a payout. Rather than taking on even more stress, we recommend visiting a local attorney. At Cannella Legal, we’ve learned that insurance companies can be slippery, and they manage to squirm out of tight situations. Luckily, we’ve also learned the best tactics and techniques in helping policyholders after a bad faith denial.

With full knowledge of the local laws, we can assess your case and decide whether or not compensation is likely. If the insurance provider still fails to settle as we file a claim dispute, the next step would be court and we have the resources to do this on your behalf.


When you choose Cannella Legal, you only pay if the case is successful. What’s more, under law, insurance providers are obligated to pay for attorney fees if the case wins. If your case has been unfairly denied, contact our brilliant team now!