How common are home insurance claim denials in Michigan?

Denied claims happen more often than many people realize. This is at least partly because the insurance business model depends on providers collecting far more money for premiums than for payments in the event of unforeseen damage.


Detroit, MI – Home insurance is supposed to protect against various types of claims. This includes weather, fire, theft, vandalism and landlord suits. When the policyholder experiences these types of damages and files a claim, the claim may not always be approved for various reasons. This can be extremely frustrating, and sometimes the insurance company may act illegally. People facing problems related to insurance claim denials in Michigan can contact an attorney for assistance.

Reasons for refusal of complaint

Sometimes a claim is filed but the insurer does not approve it for various reasons. Some of the reasons why claims are denied are paperwork errors by the claimant, failure to meet a deadline to file the claim, clerical errors on the part of the provider, policy coverage not being covered. does not apply to the type of damage or denial of claims in bad faith by the supplier. In some of these situations, the homeowner may be out of luck because their policy legitimately does not cover their damages. However, it is common for insurance companies to make serious mistakes or illegitimately deny claims that should be paid.

The frequency of claim denials

Denied claims happen more often than many people realize. This is at least partly because the insurance business model depends on providers collecting far more money for premiums than for payments in the event of unforeseen damage. In other words, it is in the insurance company‘s interest to deny claims and avoid payments as much as possible. In extreme cases, this causes insurance companies to deny claims that should be paid based on the terms of the policy, a practice called bad faith denial.

brown home sweet home wall frame; image by Julie Hochgesang, via Unsplash.com.

Claim denials can also occur for a number of legitimate reasons. Owners should know the terms of their policy, the amount of their deductible and the time limits for claims. The combination of legitimate and illegitimate reasons for denying a claim means that there is a high chance that a given claim will not be approved.

Help after a denial of claim

Most insurance companies offer some sort of appeals process to review a denied claim. There is no guarantee that a call will correct the issues and result in the approval of the claim. In fact, because the insurance company controls this process, the outcome is likely to be the same. In many cases, after a claim has been denied, outside help from a lawyer is often the best option.

Find a Local Insurance Lawyer

USAttorneys.com is a website that helps people in Detroit and other cities across the country get the right kind of legal help. Anyone who needs more information about the different types of lawsuits can use the directory to find a lawyer nearby.

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