Denied Water Damage Claim? Here’s What You Can Do

1 in 10 Homeowner Insurance Property Damage Claims are denied (National Association of Insurance Commissioners)

Receiving a denial on your water damage insurance claim can feel like a second disaster. After all the stress of cleanup, file claim documentation, and property loss, the last thing any homeowner wants is a letter saying their insurance won’t cover it. A denied claim isn’t the end of the road. There are steps you can take to challenge the decision and possibly recover the compensation you deserve.

At Local Restore Pro, we’ve worked with hundreds of homeowners who faced similar setbacks. With the right approach and documentation, many were able to reverse denials and get covered.

Why Claims Get Denied 

According to data from the National Association of Insurance Commissioners, around 1 in 10 property damage claims are denied. The most common reasons include:

• Damage deemed “gradual” or due to lack of maintenance

• Policy exclusions (like floods or sewer backups)

• Late claim filing

• Incomplete documentation

• Disputes over the cause of damage

Understanding why your claim was denied is the first step in fixing it.

What to Do After a Denial

1. Review the Denial Letter Carefully

The insurance company is required to provide a written explanation for the denial. Read it thoroughly. Look for the exact clause or policy section they’re citing. If the language is unclear, call your insurer for clarification.

2. Recheck Your Policy Coverage

Look back at your homeowners insurance policy. Are there endorsements or riders that may apply? Some policies cover water damage caused by plumbing failures but not floods. Others exclude gradual leaks but cover sudden pipe bursts.

3. Gather Additional Evidence

If your documentation was weak, now’s the time to strengthen it. Take more photos, get repair estimates, and collect any service reports (like from plumbers or restoration companies). Local Restore Pro can help assess the damage and provide a professional evaluation.

4. Request a Reconsideration

Write a formal appeal letter to your insurer. Include:

• Policy number and claim reference

• Reason for the appeal

• Supporting documents (photos, estimates, receipts)

• Expert assessments, if available

• Submit the appeal within the window stated in your denial notice, usually 30 to 60 days.

5. Consider a Public Adjuster

If you’re still facing resistance, you may hire a licensed public adjuster. They work on your behalf to negotiate with your insurance provider and often succeed in getting partial or full claim approvals. You can get assistance in getting a licensed adjuster with Local Restore Pro, sign up here.

6. File a Complaint

If your appeal fails and you believe the denial is unjust, file a complaint with your state’s insurance department. This step can pressure the insurer to re-evaluate.

Don’t Let One “No” Stop Your Recovery from Damage

A denied water damage claim can be frustrating, but it doesn’t have to be final. Many claims are reversed with proper documentation, persistence, and expert help. At Local Restore Pro, we guide homeowners through the claims process, from initial inspection to appeals and full restoration.

Think your denial was wrong? 

Fill out the form below and let our experts review your situation for FREE. 

We’ll help you fight back and get your home restored the right way.