Claim Denial

A claim denial is a formal refusal by an insurance carrier to pay for a loss submitted by the policyholder. Denials are frequently triggered by “Named Peril” exclusions, “Actual Cash Value” roof endorsements, or failures to “Mitigate” damage. Every denial must be accompanied by a specific explanation of the policy language used to justify the rejection. Homeowners have the legal right to appeal a denial through internal reviews or by contacting their state regulator.