Imagine this: You wake up one morning after a big storm. You go outside and see that your roof is missing shingles. Water leaked into your living room, and now your floor is soaked. As a policyholder, you feel better knowing you have homeowners insurance with Allstate to cover incidents like these.
But when you file your insurance claim, Allstate denies it. They claim your roof wasn't damaged by the storm or state there's insufficient evidence to support your claim. Now, you’re stuck with unpaid claims, facing a significant repair bill without the assistance you expected.
This happens more often than you think. Allstate has a history of denying property damage claims, sometimes employing bad faith tactics. In this blog, we’ll explain why this happens, share real-life examples, and guide you on what to do if Allstate denies your claim.
Why Does Allstate Deny Property Damage Claims?
Allstate, like other big insurance companies, makes money by collecting your premiums (the money you pay for your policy) and paying out as little as possible in claims. This means they sometimes deny claims that should be covered.
Here are some of the most common reasons why Allstate denies property damage claims:
- They Say the Damage Wasn't Caused by the Event You Reported
For example, if a storm damages your roof, Allstate may claim that your roof was already old or poorly maintained before the storm. They might say the damage was due to wear and tear, not the storm. - They Say You Didn’t File the Claim on Time
Many insurance policies have strict rules about how quickly you need to report damage. If you wait too long, even if you didn’t notice the damage right away, Allstate might deny your claim. - They Say You Don't Have the Right Coverage
Sometimes, homeowners think they are covered for certain types of damage, but the insurance company finds a loophole to avoid paying. For example, if you don’t have separate flood insurance, Allstate won’t cover flood damage. - They Say You Didn’t Provide Enough Evidence
If you don’t take photos or keep records of damage and repairs, Allstate might deny your claim due to lack of proof. They often require detailed documentation before approving a claim.
Real-Life Stories of Allstate Denying Claims
Many homeowners have filed complaints regarding Allstate's claim denials. Here are some real stories from people who had their property damage claims denied:
Case Study #1: Allstate's Denial of Roof Damage Claims
In Florida, there have been reports of Allstate denying roof damage claims by attributing the damage to pre-existing conditions. For example, some homeowners have reported that Allstate refused to cover roof damage from hailstorms, alleging that the damage was due to the roof's age or lack of maintenance. These denials have led homeowners to seek legal assistance to challenge the insurer's decision
(Source: Top Class Action)
Case #2: Court Orders Allstate to Reveal Bonus Plans
In a recent case, Allstate was ordered by a court to disclose its bonus plans after refusing to pay a storm damage claim. The lawsuit suggests that Allstate may reward employees for denying claims, rather than helping homeowners get the coverage they paid for.
This raises serious questions about whether Allstate is acting in good faith when handling claims.
(Source: Insurance Business Magazine)
Case #3: Allstate Denied Roof Damage Claims in Colorado
A big storm hit Colorado, and many houses had bad roof damage from hail. Homeowners thought their insurance would help, but Allstate kept saying no to paying for new roofs.
A news investigation by Denver7 found that even when other insurance companies paid for repairs, Allstate refused. Homeowners were frustrated because they had proof their roofs were damaged, but Allstate still denied their claims.
Some people had to fight back by hiring an attorney or paying for repairs themselves. Many said it wasn’t fair, and they felt like Allstate was trying to save money instead of helping them.
(Source: Allstate Denied Roof Claims After Hailstorms)
What Should You Do If Allstate Insurance Denies Your Claim?
If your property damage claim gets denied, don’t give up! You still have options:
1. Read the Denial Letter Carefully
Allstate must tell you why they denied your claim. Read the letter closely to understand their reasoning.
2. Check Your Insurance Policy
Look at your insurance policy to see if your damage should be covered. Sometimes, insurance companies deny claims hoping that homeowners won't check the fine print.
3. Gather Evidence
- Take photos and videos of the damage.
- Get estimates from contractors to prove the repairs are necessary.
- Keep all emails and letters from Allstate.
4. File an Appeal
You can appeal Allstate’s decision by providing more proof and asking them to reconsider your claim.
5. Contact an Attorney
If Allstate still refuses to pay, consider hiring an attorney who specializes in insurance disputes. Our lawyers offer free consultations and only charge if they win your case.
How to Prevent Future Insurance Claim Denials
To protect yourself from future claim denials, follow these steps:
- Review Your Insurance Policy Regularly: Make sure you understand what’s covered and what’s not.
- Take Photos of Your Home Every Year: Before any damage happens, have pictures of your roof, walls, and property.
- Report Damage Immediately: Don’t wait to file a claim. The sooner you report it, the better.
- Hire a Public Adjuster: If your claim is big, a public adjuster (someone who helps homeowners fight insurance companies) can negotiate on your behalf.
Take the Next Step to Fight Against Your Claim Denial:
If you believe Allstate wrongfully denied your claim, contact us today for a free case consultation. Our experienced attorneys fight insurance disputes. We have helped homeowners win compensation after claim denials.
