Denied Rightful Benefits? Check These Water-Based Insurance “Loopholes”

Denied Rightful Benefits? Check These Water-Based Insurance LoopholesBeing a homeowner isn’t always easy. There’s so much that goes into owning a home, including having an insurance policy that protects you from various dangers. But, does your insurance policy actually protect you? Many insurance policies have different riders that wind up costing the homeowners more than just their premium when damage is done to their property. For example, has your home been damaged by a flood, a storm, or a broken pipe? Are you under the belief that your policy will cover such damage? Depending on your policy, you may not be covered after all.

Burst pipes vs. slow leaks

Let’s begin with a claim dispute from Chesterfield, Virginia. The policyholder walked into her home one day and waded through water. The contractor identified three leaks in the home, one labeled as short-term (or new) and two labeled as long-term (or gradual).

Despite the homeowner’s policy covering water damage, the insurance company only issued a check for part of the claim. The company claimed that the damage to the home was considered gradual, because of the two long-term leaks – and that gradual wear and tear was not covered under the policy.

Is my water damage covered?

It’s important to know what your policy covers before you get into trouble. There are some claims that may be covered in full, such as roof leaks, burst pipes, water lines from appliances and compressor breaks.

You could also suffer water damage from a severe storm, such as a hurricane, which leads to one of the most common problem homeowners face: they have coverage for hurricanes through their policy, but the insurance company won’t pay in full because the policyholder isn’t covered for flood damage. You should look into flood coverage, as it may save you in the long run.

Pay close attention to the language of your policy

The terminology, or wording, used in the policy can be deceptive, too. Often, these policies are written in draconian “legalese,” and most policyholders don’t read their policies in their entirety, creating another way for the insurance company to deny a claim. Talk to your agent about your policy, and make sure to have the coverage you need.

Were you denied benefits by your insurance carrier because of one of the “loopholes” mentioned here? If so, it’s time to speak with an experienced Tennessee insurance dispute attorney from McWherter Scott & Bobbitt about your situation. Brandon McWherter, Clint Scott and Jonathan Bobbitt provide residents of Tennessee with honest and trustworthy representation. Call the office at 888-996-9731 or fill out the contact us form found on the website to schedule an appointment.