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Insurance Companies Denied The Most Claims
25
Feb

Insurance Companies Denied the Most Claims

February 25, 2025,
Insurance Companies Denied The Most Claims

The challenges facing homeowners in disaster-prone areas have grown exponentially, particularly in California. In 2023, three major home insurance companies in the state denied claims at rates significantly higher than the national average, according to a report from Weiss Ratings (source). This trend raises concerns about the state of home insurance amid a climate crisis that continues to increase the frequency and severity of natural disasters. Here are the insurance companies that denied the most claims.

The Numbers Behind the Insurance Denials

Weiss Ratings found that affiliates of Farmers Insurance, based in Los Angeles, denied approximately 50% of claims in California in 2023. USAA affiliates followed closely, declining 48% of claims, while Allstate Insurance, headquartered in Illinois, denied 46% of claims. These figures are starkly higher than the nationwide claim denial rate of 37% and represent a sharp increase from 25% two decades ago.

It’s important to note that these numbers reflect claims denied before California’s devastating wildfires in Los Angeles, which have destroyed more than 12,000 structures. The surge in climate-related disasters has sent insurance costs soaring and, in some cases, prompted insurers to drop coverage in high-risk areas altogether (sourc

Understanding Why Insurance Claims Are Denied

While the Weiss report paints a concerning picture, insurance companies argue that the numbers are more nuanced than they appear. Many of the denied claims cited in the report were closed without payouts because:

  • Damages Did Not Exceed the Deductible: Claims were below the policy’s threshold for coverage.

  • Policy Exclusions: The reported damage was not covered under the specific policy.

Despite these explanations, the end result for policyholders remains the same—no financial assistance to repair or rebuild after damage.

The Climate Crisis and Its Impact on Insurance

Martin Weiss, CEO of Weiss Ratings, attributes the rise in denied claims to the increasing number of climate-related disasters that inflict severe damage or total destruction on homes. The human-driven climate crisis has made extreme weather events more frequent, leaving insurers grappling with soaring costs.

In response to the Los Angeles wildfires, California Insurance Commissioner Ricardo Lara took action to protect affected policyholders. Lara prohibited insurance companies from dropping or refusing to renew policies for up to a year for those impacted by the fires, ensuring homeowners have a safety net as they recover (source).

“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” Lara stated.

What This Means for Homeowners

The Weiss report highlights a critical issue for policyholders: even with protections against non-renewals, insurers are not obligated to approve all claims. This underscores the importance of understanding your policy’s terms, including coverage limits, exclusions, and deductibles.

For homeowners facing denied or underpaid claims, working with an experienced insurance attorney can make all the difference. Legal representation can help policyholders navigate the complex claims process, challenge unfair denials, and secure the compensation they deserve.

How Chad T. Wilson Law Firm Can Help

At Chad T. Wilson Law Firm, we specialize in holding insurance companies accountable for their obligations to policyholders. If your claim has been denied or underpaid, our dedicated team is here to fight for your rights and ensure you receive a fair resolution.

Don’t let your insurance company shortchange you in your time of need.

Contact us today for a free consultation and let us help you rebuild with confidence.

home insurance fails
21
Feb

When Home Insurance Fails

February 21, 2025, ,

What You Can Do When Home Insurance Fails

home insurance fails

For Karen and Tony Hoover, the last thing they expected after nearly 50 years of insuring their San Francisco Victorian home with Liberty Mutual Insurance was to face a sudden non-renewal of their policy. The cited reason? Aerial photographs allegedly showing “moss, mildew, algae, and mold” on their roof—photos that turned out to be misleading. The Hoovers’ determined fight to restore their coverage not only highlights the challenges many homeowners face today but also serves as a guide for others navigating similar situations.

The Hoovers’ Fight for Coverage

After receiving a non-renewal letter, the Hoovers were baffled. The aerial photograph, which seemed to be sourced from Google Earth, showed no visible evidence of the alleged damage. “All they do is show this picture of the whole roof—looking down. You can’t see one mark of discoloration,” Karen Hoover told reporters from 7NEWS (source).

Determined to clear their name, the couple hired Excelsior Roofing, a reputable local roofing company, to conduct a professional inspection. The results? The roof was in excellent condition, with no signs of mold, algae, or other issues. Armed with detailed photographs and a clean report, the Hoovers appealed the cancellation. While Liberty Mutual initially remained unresponsive, media involvement quickly led to their policy being reinstated.

A Growing Crisis in Home Insurance

The Hoovers’ case isn’t isolated. Across the U.S., especially in disaster-prone states like California and Florida, homeowners are facing increased challenges with insurance cancellations and non-renewals.

  • California: Since 2022, seven of the top 12 insurance carriers have cut existing policies or stopped issuing new ones, leaving thousands of homeowners scrambling for coverage.

  • Florida: In November 2024, Florida’s leading insurance company dropped over 200,000 policies in the wake of Hurricanes Helene and Milton.

An NBC News analysis found that 1 in 8 American homeowners now lack insurance—a troubling statistic in the face of increasing natural disasters.

What to Do if Your Home Insurance Is Canceled

Facing a non-renewal or cancellation can be overwhelming, but there are steps you can take:

  1. Request Documentation: Ask your insurer for a detailed explanation of the decision and any supporting materials, such as photographs or assessments.

  2. Get an Independent Inspection: If cited for property issues, hire a reputable inspector to provide a second opinion.

  3. Complete Necessary Repairs: Address any issues promptly, such as roof repairs or removing debris, to meet the insurer’s requirements.

  4. Contact Your State’s Department of Insurance: If you’re unable to resolve the issue, your state’s Department of Insurance can help ensure the insurer is complying with regulations.

  5. Explore State Insurance Plans: Many states offer last-resort insurance options. For example:

    • California FAIR Plan: Provides basic fire insurance for at-risk properties.

    • Florida Citizens Property Insurance: A non-profit program for homeowners unable to secure traditional policies.

Advocating for Your Rights

The Hoovers’ ordeal underscores the importance of self-advocacy and persistence. By staying informed and proactive, homeowners can challenge unjust decisions and secure the coverage they need.

How Chad T. Wilson Law Firm Can Help

At the Chad T. Wilson Law Firm, we specialize in helping policyholders navigate insurance disputes, from non-renewals to denied claims. Our team of experienced attorneys is dedicated to ensuring that your rights are protected and that you receive the coverage and compensation you deserve.

If your home insurance has been canceled or your claim unfairly denied, don’t face it alone. Contact us today for a free consultation, and let us help you fight back and protect your home.

Colorado’s Insurance Crisis
18
Feb

Colorado’s Insurance Crisis

February 18, 2025,

Colorado's Insurance Crisis

Colorado’s Insurance Crisis

Wildfire risk is on the rise across Colorado, and homeowners are feeling the strain—not only from the physical dangers of fires but also from the growing challenges in securing affordable and comprehensive insurance coverage. Experts warn that the state is teetering on the edge of an insurance crisis similar to what California is currently facing.

Why Colorado Is at Risk

Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association (RMIIA), explains that Colorado’s status as a high-catastrophe state, coupled with unprecedented natural disasters, has created a challenging environment for insurers. “We’re all seeing that play out in rising premiums and also a more limited marketplace for access to insurance,” Walker stated (source).

Over the last decade, insurance companies have experienced consistent financial losses in the state. As a result, homeowners in areas deemed high-risk are being dropped from their policies or facing skyrocketing premiums. For example:

  • In Coal Creek Canyon, residents were abruptly dropped by their insurers in late 2024.

  • In Castle Rock, HOA fees in the Latigo community doubled due to a 600% increase in insurance premiums.

  • Homeowners in Arvada reported difficulty finding coverage, with one resident receiving only a single quote after contacting 20 insurance companies.

What Makes Colorado Vulnerable?

Colorado shares many of the same risks as California, including wildfire-prone areas and rapidly increasing reconstruction costs. However, Walker points out that the state hasn’t yet implemented the same “man-made catastrophes”—policy decisions—that have worsened California’s crisis. Still, she warns that Colorado is “a few bad decisions away” from a similar outcome.

What Homeowners Can Do

As the insurance landscape shifts, it’s crucial for Colorado homeowners to take proactive steps:

Review Your Insurance Policy

Understand what your policy covers, including wildfire and natural disaster risks.

Take Advantage of Discounts

 Speak with your insurance professional about potential savings and discounts you might qualify for.

Consider Mitigation Programs

Wildfire mitigation efforts, such as creating defensible space around your property, can reduce risk and make your home more attractive to insurers.

Explore All Insurance Options

While the Colorado FAIR Plan provides last-resort coverage for properties at extreme risk, it’s best to exhaust traditional options first.

The Role of Legislative Action

Walker emphasized the importance of collaboration between homeowners, insurers, and legislators to stabilize Colorado’s insurance market. Programs that scale wildfire mitigation efforts could make a significant difference in reducing risk and costs. “We know that wildfire is one of those risks that we can bend down through mitigation,” she said. “Doing it at a scale that makes a difference to those insurance companies is key.”

How Chad T. Wilson Law Firm Can Help

At the Chad T. Wilson Law Firm, we understand the challenges homeowners face in securing fair and adequate insurance coverage. Our team specializes in holding insurance companies accountable, ensuring that policyholders receive the compensation they deserve when disaster strikes.

If your insurance claim has been denied or underpaid, don’t navigate the complexities alone. Contact us today for a free consultation, and let us help you protect your home and financial future.

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