Common Reasons for Denied Wildfire Insurance Claims in Colorado

Wildfires in Colorado are becoming more frequent and more intense, and it takes mere minutes for a raging wildfire to consume an entire home standing in its path. If that home happens to be yours, you expect and deserve recourse. That is why you have homeowners insurance in the first place. Unfortunately, the reality is that some wildfire insurance claims are underpaid or denied, thus leaving homeowners feeling stranded and overwhelmed in an already stressful situation.

In this post, we’ll explore common reasons for denied wildfire insurance claims in Colorado and discuss options if you happen to be facing this situation.

Reasons for Denied Wildfire Insurance Claims 

Facing a wildfire is a terrifying experience for any Colorado homeowner. When disaster strikes, you rely on your insurance policy to provide financial protection and aid in rebuilding your life, yet this is not always the case. Here are some reasons your insurance company may try to deny your claim:

• Policy exclusions – Some insurance policies exclude coverage for wildfire-related damage. Review your policy to understand if any exclusions may apply to your coverage.

• Failure to meet policy requirements – Another reason insurance claims may be denied in Colorado is because the policyholder failed to follow the insurance provider’s rules and regulations. Often this includes not filing the claim within a specified time frame and thus missing the deadline. Insufficient documentation or missing information can also lead to claim denial. 

• Disputes over what caused the damage – Insurance companies may dispute the cause or extent of damage if they believe the damage was not solely caused by the wildfire.

• Insufficient coverage – If your policy does not provide adequate coverage for rebuilding or repairing your home after a wildfire, your claim may be denied or you may receive a lower payout than expected.

Contact an Attorney to Discuss Your Options

Experiencing a denied or underpaid insurance claim for wildfire damage in Colorado is incredibly frustrating, but know that you have the right to appeal an underpaid claim. 

As you prepare to appeal, do your best to be vigilant and document the actions of your insurance company, including writing down the dates of communications, inspection dates, names and affiliations of various people, and brief summaries of any non-written communications or interactions. 

To learn more about your options and what steps to take, consult a legal professional who specializes in Colorado insurance claims. A firm like ours can take over representation on your behalf. Contact our team at Kandell, Kandell & Petrie to learn how we can help you get relief if your insurance company tries to deny or underpay you for your claim.