Water damage claims are often not as straightforward as other types of insurance claims, though don’t get us wrong, homeowners can run into issues with all types of property damage claims. Plumbing damage, however, is particularly nuanced because most policies come with a long list of policy exclusions. Insurance companies are more than happy to point to them as a means of denying your claim. While some exclusions may very well apply to your situation, not all do. So how are you to know if your claim was justifiably denied?
Review Your Insurance Policy
The best place to start is by reviewing your insurance policy in detail. Getting clarity on what is and isn’t covered will help you best strategize on your next steps. Insurance companies often cite policy exclusions for certain types of plumbing damage, including those caused by gradual leaks, poor maintenance, flooding, or sewer backups.
Could Your Insurance Company Be Acting in Bad Faith?
If, after reviewing your policy, you believe your plumbing damage claim was unfairly denied or underpaid, it may be because your insurance company was acting in bad faith. Bad faith insurance is when an insurance company fails to fulfill its obligations to the policyholder in a fair and reasonable manner. Generally, just having your claim denied or being in a dispute over a payment is not enough to pursue bad faith litigation in Colorado, but there are situations in which suing your insurance company may be the right path to follow. If they apply exclusions in an unreasonable manner or ignore facts that support the claim, these are examples of bad faith practices.
To prove bad faith, it’s crucial to document all communications with your insurance company. Hang on to letters, emails, texts and claim documentation. Keep records of phone calls and any other interactions you have with your provider. It can also be useful to gather third-party opinions from experts such as engineers or contractors. These experts can provide insights into the damages and the insurer’s handling of the claim, which can strengthen your case.
Contact Us at Kandell, Kandell & Petrie for Help
To learn more about bad faith demands in Colorado and ask your questions about insurance law, contact our team at Kandell, Kandell & Petrie. We have more than 50 years of combined legal expertise and are here to ensure you receive the relief you deserve for your water damage insurance claim in the greater Denver area and throughout Colorado.
