When property damage occurs, Illinois property owners expect their insurance companies to provide prompt and adequate support. After all, paying premiums month after month should guarantee protection when disaster strikes. Yet too often, homeowners, businesses, and associations encounter an unexpected roadblock: a denied insurance claim. These denials leave property owners scrambling to cover costly repairs out of pocket. At Vargas Gonzalez Delombard, our Illinois insurance denial lawyers fight back against unfair practices, making sure insurers are held accountable and policyholders receive the compensation they are owed.
Common Reasons Why Insurance Claims Are Denied
Insurance companies rarely admit that they are denying claims to save money. Instead, they rely on technicalities or policy language to justify their decisions. Some of the most common reasons claims are denied in Illinois include:
- Alleged pre-existing damage: Insurers argue that roof leaks, cracks, or mold existed before the reported event.
- Wear and tear exclusions: Carriers claim that damage resulted from age or lack of maintenance rather than a sudden loss.
- Late reporting: If policyholders don't notify their insurer immediately, the carrier may reject the claim.
- Policy exclusions: Insurers cite exclusions for earth movement, flooding, or mold, even when those issues stem directly from a covered event.
- Disputes over cause of loss: Carriers argue that damage was due to uncovered causes, such as "settling" or "poor construction," instead of the actual storm, fire, or plumbing failure.
- Incomplete documentation: Claims are sometimes denied because policyholders didn't provide enough photos, receipts, or repair estimates.
While some denials may have merit, many are based on misinterpretation or deliberate misapplication of policy terms.
