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Denied House Fire Insurance Claims in Kentucky

The National Fire Protection Association (NFPA) stated that over a five-year period from 2016-2020, there were an average of 343,100 home structure fires per year. Those yearly fires resulted in an annual average of:

  • 2,610 civilian deaths;
  • 11,090 civilian injuries; and
  • $7.6 billion in direct property damage.

Specifically in Kentucky, residential structure fires in 2023 resulted in 5.8 deaths and 19.7 injuries per 1,000 fires.

Home fires are often caused by situations like cooking, heating equipment, electrical distribution, and lighting equipment. When a house fire occurs, the homeowners will turn to their home insurance policy to help with the resulting damages.

What happens when a house fire insurance claim is denied?

Morrin Law will cover this question and the resulting process for bad faith insurance claims below.

What is Homeowners Insurance?

General homeowner insurance covers the following components:

  1. Dwelling Coverage – Protects the physical structure of a home. In the case of a fire destroying or damaging the house structure, the dwelling coverage should pay for any repairs or rebuilding.
  2. Personal Property – Personal property refers to the loss of valuable belongings aside from the home’s structure. The policy is meant to help cover the replacement of furniture, electronics, clothing, or other personal items.
  3. Loss of Use – If a house fire has left the home uninhabitable, the loss of use policy is meant to cover the cost of temporary housing, meals, and other living expenses.

Insurance Coverage for Fire Damage

Homeowners with property insurance are typically covered from fire damage and potential losses caused by an unexpected fire. The policy is meant to cover both direct and indirect damage resulting from a fire.

This can include:

  • Destruction of personal property: Furniture, appliances
  • Structural damage to the home: Damage caused by heat, smoke, or water used to extinguish the fire
  • Additional costs: Temporary displacement, professional cleaning services, and other necessary repairs

Before diving into a denied house fire insurance claim, we should look at common causes of house fires:

  • Cooking – One of the leading causes of residential fires is from unattended cooking such as grease fires, deep fryers, or stoves that are left on.
  • Electrical problems – A house fire can start from appliance malfunction, overloaded circuits, or faulty wiring.
  • Smoking – A fire can start from a lighter or cigarette butt that is left unattended.
  • Candles – Open flames from a candle can quickly ignite if it sparks near furniture, drapery, or clothing.
  • Fireplaces – A fire can spread from a fireplace that is not monitored.
  • Children – An accidental house fire can start when children are playing with fire or flammable objects.
  • Grilling – A fire can occur from a barbeque that is not properly maintained.
  • Space heaters – A fire can quickly start if a space heater is too close to combustible materials.
  • Arson – A fire that was intentionally started by another person can spread and cause severe damage.

According to the Kentucky Department of Insurance, avoiding the improper use of space heaters, decorative candles, and any misused, overused, or faulty extension cord can help prevent a home fire.

Know Your Rights as an Insurance Policyholder

Under Kentucky’s Department of Insurance, there are several different types of complaints one can file regarding their insurance. For a scenario involving health insurance, life, auto, general liability, or home insurance, a consumer complaint should be filed. A consumer complaint is filed by the consumer or their representative, who is having a challenging time settling a situation with the insurance company, agent, or adjuster.

Why Home Insurance Companies Deny Fire Damage Insurance Claims

So, you’ve experienced a house fire. You try to file a fire damage claim with your insurance, but it gets denied. Why?

One of the most common reasons a home insurer will try to deny a fire damage claim is due to alleged negligence. This means they will try to say you acted or did not act in a way that ultimately resulted in a preventable fire.

Other common circumstances in which a property insurance claim may be rejected include:

  • Insurance carrier suspects the homeowner committed arson and insurance fraud;
  • The damage caused to the property isn’t covered by the homeowner’s insurance policy;
  • Homeowner is accused of allowing their property to fall into disrepair or have constructed it poorly, which creates a higher risk of a fire;
  • Homeowners have omitted certain information from the claim, such as the source of the fire or information they didn’t realize was important to include; or
  • Disputing the claim’s value by approving the claim but denying the full amount of costs to repair the home.

This is where the homeowner must be vigilant. Understanding how insurance companies may try to deny a claim can help protect their rights and help them receive the compensation they deserve. Contact a Kentucky-based insurance dispute attorney to discuss your case details today.

What to Do if You Suspect Your Insurance Company is Acting in Bad Faith

What does it mean if an insurance carrier has acted in bad faith? Bad faith means that they have acted unreasonably or have broken their contractual duties to you.

Common examples of bad faith insurance practices include:

  • Delaying claims or payment with no valid basis;
  • Unreasonable denial of claims for misleading reasons;
  • Failure to thoroughly investigate and evaluate a claim;
  • Refusing to settle for a fair, reasonable amount for clear liability;
  • Advising a claimant not to seek legal representation; or
  • Negotiating and making agreements in bad faith with no intentions of honoring them.

Insurance companies are known for their avoidance of paying valid fire insurance claims. If you suspect that your claim was underpaid or denied, consider contacting Morrin Law. We will fight for you if you’ve been treated in bad faith by the insurance company.

Can I Sue My Insurance for Pain and Suffering?

In some instances, yes. If your insurance company has violated the contract by unreasonably denying a fire damage claim, you may have grounds for a bad faith action. A bad faith insurance lawsuit that is successful can help policyholders recover the benefits initially owed, along with the potential of monetary compensation for financial losses, emotional distress, and economic hardship.

House fires can cause long-term consequences caused by heat, smoke, soot, or other contaminants. Fire and smoke alone can create corrosion and discoloration to a home’s walls, ceilings, and furniture. Even years after a fire has been extinguished, the odors from smoke can still linger in a household. Additionally, smoke residue can cause health problems, like respiratory issues, due to the toxic chemicals that seep into the insulation and walls. If a fire hose was used to extinguish the flames of a residential fire, there is also a risk of water damage occurring in the home. Standing water can develop into mold, which also creates a risk of health issues later.

It’s important to consider the potential long-term consequences of house fire damages if you file a fire damage insurance claim.

Time Limit for Bad Faith Insurance Claim in Kentucky

Under Kentucky’s Statute of Limitations, the time frame for filing an insurance bad faith claim is as follows:

  • Two years for first-party claims under the Kentucky Consumer Protection Act (KRS 367.220(5)); or
  • Five years for first- and third-party claims under the Kentucky Unfair Claims Settlement Practices Act (UCSPA) for actions on liability created by a statute not containing its own limitations period (KRS 304. 12-230 and 120(2).

Consult an experienced attorney in Kentucky regarding questions you may have about the statute of limitations for your denied fire insurance claim.

Documents Needed to Fight Denied House Fire Insurance

To successfully fight denied house fire insurance coverage, it is advised that you maintain documentation that supports the claim. This can include evidence of:

  • Incomplete investigations
  • Incorrect claim denials
  • Damage caused by denied claims
  • Phone calls, emails, letters, or any other correspondence

Essentially any evidence that shows the claim is valid and the insurance company is not fulfilling its obligations should be documented for taking legal action.

What to Do if Insurance Company Refuses to Settle

If a settlement is clearly being refused by the insurance company, you can file a complaint with Kentucky’s insurance department to investigate and help resolve the dispute. An attorney with Morrin Law can assist with reviewing the insurance policy, understanding your legal rights, and fighting to ensure you receive fair compensation for the damages resulting from the fire.

Contact a Kentucky Personal Injury Attorney with Morrin Law Firm

When a tragedy strikes and you’ve been left with nothing but property damage and surmounting bills, turn to the legal team at Morrin Law. We understand how difficult this period may be, and we want to assist you in any way we can. Collecting evidence, contacting insurance agencies, and filing a bad faith lawsuit are all ways in which our Kentucky personal injury lawyers can help. Contact our office today at (859) 295-5161 and receive a risk-free consultation.