Navigating Insurance Denials: Addressing Damage by an Unlicensed Contractor
When faced with unexpected property damage, discovering that your insurance claim has been denied can be overwhelming. This was exactly the case for a homeowner whose residence suffered damage due to the actions of a neighbor’s unauthorized contractor. In this blog post, we’ll explore the challenges they encountered and consider potential next steps.
The Predicament
Recently, a homeowner found themselves grappling with a frustrating situation. Their property had been damaged by a contractor hired by a neighbor—a contractor operating without proper business registration, trade name, or licensing. Despite the visible and verified damage, the homeowner’s insurance policy from Farmers denied their claim.
The basis for this denial was rooted in a specific policy clause:
Section 1: Uninsured Types of Loss or Damage and Excluded Causes of Loss and Damage
- Uninsured Types of Loss or Damage
- Faulty, Inadequate, or Incomplete Planning, Zoning, Maintenance, Repairs, Renovation, Manufacture, or Construction
The homeowner was perplexed. They had not engaged this contractor, so the clause seemed an ill fit for their situation. They had anticipated their insurer would seek compensation from the neighbor’s insurance through the subrogation process.
Seeking Solutions
Given this dilemma, the homeowner is left contemplating their next steps. Here are some suggestions for tackling such a scenario:
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Review the Policy: Carefully examine the details of your insurance policy. Understand the clauses that your insurance company has referenced to deny your claim. This will help ascertain whether there’s a valid basis for the denial.
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Consult a Professional: Engage with an insurance expert or an attorney to gain clarity on your rights and the validity of the insurer’s denial. They can provide insights and help frame your argument if you decide to contest the denial.
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Neighbor’s Liability: While dealing directly with your insurer, it’s essential also to reach out to your neighbor. They might have liability insurance that could cover the damages, permitting their insurance company to step in.
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Document Everything: Ensure all communications with your insurer and neighbor are documented. These records may be crucial if you need to escalate the matter or engage in dispute resolution.
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Consider Mediation: If negotiations with the insurance companies stall, mediation might offer a path to an agreeable resolution outside of court.
Unfolding Updates
In the initial post context, the
