Denied & Underpaid Claims
A denied claim is not the end of the road. It is often just the beginning.
Overview
If your insurance claim was denied, underpaid, or closed prematurely, you still have options — and time may be running out to exercise them. A denied or underpaid claim means the insurance company has either refused to pay or has paid less than the actual cost to repair your property. Neither outcome is final. Insurance policies include dispute resolution mechanisms — including the appraisal clause and, in some states, statutory bad-faith remedies — that give policyholders the right to challenge their insurance company's decision. We specialize in reopening closed claims, filing supplements on underpaid settlements, and overturning wrongful denials. Many of our largest recoveries — settlements exceeding $500,000 — came from claims that had already been denied or closed. The insurance company told the policyholder "no," and we turned that no into a six-figure or seven-figure settlement.
Why do insurance companies deny valid claims?
Insurance companies deny claims for many reasons, and not all of them are legitimate. Common denial reasons include: attributing damage to wear and tear or pre-existing conditions rather than the covered event; applying exclusions that do not actually fit the circumstances of the loss; claiming the damage is cosmetic rather than functional; asserting that the policyholder failed to mitigate or report the damage in a timely manner; and using biased engineering reports to support a predetermined conclusion.
In our experience, a significant percentage of denied claims contain documentation from the insurance company that does not hold up under scrutiny. An engineering report that attributes hail damage to thermal cracking, a scope that ignores interior damage caused by a roof leak, or a denial letter that cites an exclusion taken out of context — these are the kinds of errors we find and challenge every day.
How do we fight denied claims?
Our process for handling a denied claim starts with a complete review of your claim file: the denial letter, the insurance company's inspection report, any engineering reports, your policy, and any correspondence. We identify the specific basis for the denial and evaluate whether it is supported by the evidence and the policy language.
If the denial is not supported — and in our experience, many are not — we conduct our own independent inspection, prepare new documentation, and submit a demand to the insurance company to reopen the claim. We cite the specific policy provisions that apply, present evidence contradicting the denial, and give the insurance company a clear path to resolve the claim without litigation. If they refuse, we escalate through the appraisal process or refer to qualified legal counsel.
What about underpaid claims?
Underpaid claims are even more common than outright denials. The insurance company acknowledges your damage and issues a payment — but the payment is far less than the actual cost of repairs. Many policyholders cash the check and pay the difference out of pocket, not realizing they have the right to dispute the amount.
We handle underpaid claims by filing a supplement — a formal request to the insurance company to review additional documentation and increase the settlement. Our supplements include a revised Xactimate estimate detailing every line item the insurance company missed or undervalued, along with updated photography, scope notes, and policy references. We have filed supplements that increased settlements by $50,000 to $900,000 or more, depending on the size and complexity of the loss.
Is it too late to reopen my claim?
In most cases, no. Every state has a statute of limitations and a policy-specific contractual limitations period that governs how long you have to dispute a claim. In Texas, the statute of limitations for property insurance claims is generally two years from the date of loss, though policy language and other factors can affect the deadline. Other states have different timelines.
We have successfully reopened claims that were denied or underpaid more than a year prior. The key is acting quickly once you decide to fight back. Evidence can degrade, memories fade, and deadlines pass. If you believe your claim was wrongfully denied or underpaid, contact us immediately for a free claim review. We will tell you honestly whether your claim has merit and what your options are — at no cost and with no obligation.
Our Services
How else can we help with your claim?
01
Property Damage Inspections
Comprehensive on-site assessment of all property damage to build the strongest possible claim.
02
Insurance Policy Review
Expert analysis of your policy to identify all applicable coverage and optimize your claim.
03
Claim Preparation & Documentation
Detailed documentation and professional claim preparation to ensure nothing is missed.
04
Cost Estimating
Accurate repair and replacement cost estimates using industry-standard tools and methods.
05
Insurance Negotiation
Aggressive, professional negotiation with insurance companies to fight for what you deserve.
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