Common Reasons Insurance Companies Deny Property Claims (And What Homeowners Can Do)

Insurance companies deny property claims for many reasons, from policy wording to “wear and tear” exclusions. Learn the top reasons and how you can respond with legal support.

By Jasmine Daya, Esq.

Understanding why your insurer denied your property damage claim is almost as important as knowing what to do next. At Geraci LLP, we’ve identified the most common denial reasons and prepared strategic responses you can take as a California homeowner.

Top reasons for denials

1. Exclusion for “wear and tear” or maintenance – Insurers often claim damage developed over time rather than “sudden and accidental.”

2. Late proof of loss or missing documentation – Some policies require you to provide proof within a short time.

3. Preexisting damage – Insurers argue the damage was known or preexisting before the insured event.

4. Policy exclusions – Earthquake, flood, or mold may be excluded unless you purchased additional coverage.

5. Underinsurance / Actual Cash Value vs Replacement Cost – Offers may be based on depreciated value, not full replacement.

6. Misinterpretation of “covered cause of loss” wording – Insurers may deny by categorising the cause outside your policy.

7. Insurer delay tactic – They wait you out, hoping you take a low settlement or walk away.

What homeowners should do

• Request a detailed explanation of denial in writing.

• Compare the insurer’s reasons against your actual policy wording.

• Involve a public adjuster or structural expert if damage is complex.

• Evaluate for badfaith grounds if the insurer is delaying or acting unreasonably.

• Contact a lawyer experienced in propertyinsurance disputes early — waiting reduces your leverage.

Why legal support matters

When insurers use sophisticated strategies to deny or undervalue claims, mere negotiation often falls short. At Geraci LLP, we combine legal knowledge, policy analysis, and claimant advocacy to level the playing field.

For California homeowners

If your property damage claim was denied and you believe it’s unjust — whether due to wildfire smoke, water intrusion, wind damage or storm loss, know your rights. Ignoring the denial only invites further loss.

Free Case Review

Schedule a free consultation today with Geraci LLP. Let us analyze your denial letter, your policy, and design a strategy to move forward.