Denied Property Insurance Claim? Here’s How to Fight Back and Win

How to Navigate Insurance Company Tactics and Bad Faith Denials

You filed a property insurance claim expecting financial relief, only to be met with endless delays, lowball offers, or outright denial. Now, you’re frustrated, overwhelmed, and wondering what to do next.

You’re not alone. Insurance companies deny and underpay claims every day, using complex policies, unnecessary documentation requests, and legal loopholes to protect their profits. But just because your claim was denied doesn’t mean the fight is over.

In this guide, we’ll break down the most common reasons insurers deny claims, expose their bad faith tactics, and show you how to fight back effectively. Whether you need to appeal a denial, negotiate a fair settlement, or take legal action, this guide will give you the knowledge and tools to get the compensation you deserve.

If your insurance company is stalling, underpaying, or ignoring your claim, keep reading—you don’t have to take this lying down.

Why Did the Insurance Company Deny Your Claim?

Getting a denial letter from your insurance company is frustrating, but understanding why they rejected your claim is the first step to fighting back. Sometimes, denials are based on valid reasons, but often, they’re a result of insurers misinterpreting policies, exaggerating exclusions, or making you jump through unnecessary hoops.

Here are the most common excuses insurers use to deny claims:

• “You didn’t meet policy requirements.” They may claim you missed a deadline or failed to provide required documents.
• “We found inconsistencies in your claim.” Even minor discrepancies can be used as justification for denial.
• “Our investigation doesn’t support your claim.” Adjusters may claim a lack of evidence, even when the damage is obvious.
• “Your policy doesn’t cover this.” Insurers may take a creative approach to exclusions to avoid paying.
• “We need more paperwork.” Endless document requests are a common stall tactic.
• “Your policy has an exclusion.” Insurers may stretch policy loopholes to deny coverage.

How YPA Can Help – Insurance policies are complex, and denials often rely on technicalities most homeowners aren’t familiar with. At YPA, we break down your policy, challenge unfair denials, and present the right evidence to get your claim back on track.

Bad Faith Tactics Insurance Companies Use to Delay or Deny Claims

Many policyholders expect insurance companies to act in good faith, but unfortunately, that’s not always the case. Instead of processing claims fairly, insurers often use tactics designed to frustrate, confuse, and exhaust you—hoping you’ll give up or accept a lowball offer.

Here’s what you might be dealing with:

• Delaying the process – Repeated document requests, unexplained waiting periods, and last-minute policy reviews slow down payouts.
• Offering a lowball settlement – Adjusters often make an insultingly low offer, assuming you’ll take it.
• Ignoring your communications – Calls and emails go unanswered for weeks or months.
• Making unreasonable demands – They ask for excessive or irrelevant documentation.
• Failing to investigate properly – Some insurers deny claims without even inspecting the damage.
• Misrepresenting policy terms – Adjusters may twist wording to justify a denial.

How YPA Can Help – We know these tactics inside and out. If your insurance company is stalling, offering unfair settlements, or refusing to communicate, YPA steps in to hold them accountable and push for the full payout you deserve.

How to Recognize Bad Faith Insurance Practices

Texas law requires insurance companies to handle claims fairly. When they don’t, it’s called bad faith insurance—and it’s illegal. If you suspect your insurer is acting in bad faith, you need to act fast.

Here’s what bad faith insurance looks like:

• Unexplained denials – Your claim is rejected without a clear reason.
• Unjustified delays – Weeks or months pass with no progress.
• Excessive documentation requests – They keep asking for more paperwork, even after you’ve provided everything they need.
• Sudden changes in adjusters – Your case is passed around, delaying resolution.
• Suspiciously low offers – The payout won’t come close to covering your damages.
• Misleading statements – Adjusters give vague or incorrect information about your policy.

How YPA Can Help – Some insurance claims require strong evidence. We document every delay, unreasonable demand, and misleading statement—and help negotiate a fair settlement.

What to Do If Your Insurance Claim Was Denied

A denied claim isn’t the end of the road. If you believe your claim was unfairly denied, here’s how to fight back:

1. Review the denial letter. Compare it to your policy and look for inconsistencies.
2. Gather evidence. Photos, estimates, inspection reports, and claim correspondence all help build your case.
3. Write a demand letter. This formal request outlines why your claim is valid and asks for a fair resolution.
4. File an appeal. Insurers have internal appeals processes—make sure you follow the correct steps.
5. Consult a public adjuster or attorney. If the insurer won’t cooperate, professional help may be necessary.

How YPA Can Help – We handle everything—from reviewing your denial to filing an appeal. Our team negotiates with insurers to get you the compensation you deserve, without unnecessary delays.

When to Consider Suing Your Insurance Company

If your insurer refuses to cooperate, you may need to take legal action. Texas law allows policyholders to sue for bad faith if:

• Your claim was denied without valid justification.
• The insurer failed to investigate properly.
• They engaged in deceptive practices.
• They refused to communicate or delayed the process unfairly.

How to Prove Bad Faith

✅ Show your claim was valid under the policy.
✅ Prove the insurer acted unfairly or unreasonably.
✅ Present evidence of delays, deception, or improper denials.

How YPA Can Help – Many cases that might be considered “bad faith” can be settled without a lawsuit. Before taking legal action, let YPA handle negotiations. If a lawsuit is necessary, we’ll connect you with trusted insurance attorneys.

Understanding Your Rights as a Texas Policyholder

Texas law provides protection against bad faith insurance practices. If your insurer is treating you unfairly, here are your options:

• File a complaint with the Texas Department of Insurance (TDI).
• Escalate through mediation or arbitration.
• Take legal action for bad faith insurance.

How YPA Can Help – We help policyholders file complaints, escalate disputes, and take the right steps to hold insurers accountable.

Negotiating a Fair Insurance Settlement

If you’re dealing with a lowball offer, don’t accept it. Here’s how to push back:

• Know your policy. The more informed you are, the better your negotiation power.
• Reject lowball offers. Never accept the first offer without review.
• Stay persistent. Insurers hope you’ll give up—don’t.
• Bring in an expert. A public adjuster ensures you get a fair deal.

How YPA Can Help – We negotiate aggressively on your behalf, ensuring you receive the full value of your claim.

FAQ: Specific Insurance Claim Issues & How to Handle Them

If you’re dealing with an insurance claim problem that wasn’t covered in the main article, this FAQ addresses unique, frustrating scenarios that many policyholders face.

My insurance company keeps sending different adjusters to inspect my property. Is this normal?

Some insurers rotate adjusters as a stall tactic, hoping inconsistencies arise that justify reducing or denying your claim. Each adjuster may interpret policy terms differently, leading to conflicting assessments. What you can do:

• Keep a log of every adjuster visit, including names, dates, and what was discussed.
• Request a written explanation for why a new adjuster has been assigned.
• Push for consistency by insisting that one adjuster finalize your claim.
• Bring in a public adjuster to counteract shifting assessments and ensure a fair valuation.

The insurance company is saying my damage is due to “wear and tear” even though it was caused by a storm. How do I prove otherwise?

Insurance companies commonly blame damage on “wear and tear” to avoid paying for covered events like storms or accidents. Here’s what to do:

• Gather pre-damage evidence—old home inspection reports, previous maintenance records, and past photos showing the condition before the storm.
• Obtain independent contractor estimates confirming the damage is storm-related.
• Compare your claim denial with your policy—if storm damage is covered, challenge their reasoning.
• Have a public adjuster assess your damage and write an independent report supporting your claim.

My insurance company is offering me “actual cash value” instead of “replacement cost.” What’s the difference?

Some policies pay Actual Cash Value (ACV), which deducts depreciation from your settlement. This often results in much lower payouts than Replacement Cost Value (RCV), which covers the full cost of replacing damaged property.

• Review your policy—does it specify ACV or RCV? If you have RCV coverage, push back.
• Request a breakdown of how depreciation was calculated.
• If your policy is RCV, ask how to recover depreciation. Some policies allow you to get reimbursed for depreciation after repairs are completed.

The insurance company sent me a check, but it’s way too low. Should I cash it?

Insurance companies often issue lowball checks to close claims quickly. Cashing or depositing the check may be seen as accepting their settlement.

• Read the fine print—some checks include language stating that depositing it means accepting the final settlement.
• Get a second opinion from a public adjuster before accepting.
• Negotiate before cashing—you may be able to push for a higher payout.
• If the check doesn’t say ‘final settlement,’ deposit it but keep negotiating.

My insurance company is telling me to use their “preferred contractor.” Do I have to?

Some insurers pressure policyholders to use contractors from their network, who may prioritize the insurer’s bottom line over quality repairs.

• Know your rights—you’re NOT required to use their contractor.
• Get multiple estimates from independent contractors.
• If you use their contractor, document everything—including issues with work quality or delays.
• Ask for a warranty from the contractor to ensure they stand by their work.

The insurance company says I need to provide proof of ownership for damaged or lost items. What if I don’t have receipts?

Insurers often request receipts or proof of purchase for lost or damaged belongings, knowing many policyholders won’t have them.

• Look for alternate proof—old photos, bank/credit card statements, warranty documents, or serial numbers.
• Provide a detailed inventory—describe each item, brand, purchase date (estimate if needed), and original price.
• Check your policy—some policies cover personal property even without receipts.
• If needed, hire a public adjuster to document and justify item values.

My claim has been “under review” for months with no update. How long can they legally take?

Delaying claim processing is a common insurance tactic to discourage policyholders. Texas law requires insurers to process claims within 15 days of filing and approve or deny them within 30 days once all requested documents are received.

1. Request a written status update referencing Texas’s Prompt Payment of Claims Act.
2. Send a formal demand letter citing their delay as a violation of Texas law.
3. File a complaint with the Texas Department of Insurance (TDI).
4. Bring in a public adjuster to push the process forward.

My claim was denied, but my neighbor with the same damage got paid. How is that fair?

Inconsistent claim handling happens when insurers selectively approve and deny claims based on internal cost-cutting strategies.

1. Ask your neighbor for details on their claim—who their adjuster was, what evidence they submitted, and how much they were paid.
2. Compare policies—did you both have the same coverage and deductibles?
3. Request a formal review—point out the inconsistency and demand a justification.
4. Hire a public adjuster to challenge the discrepancy and advocate for a fair payout.

The insurance company says my damage isn’t “sudden and accidental,” so they won’t cover it. What does that mean?

Most policies cover sudden and accidental damage but exclude gradual deterioration (e.g., slow leaks or foundation shifting over time). Insurers often misuse this clause to deny valid claims.

1. Get a contractor’s assessment to confirm whether the damage was sudden.
2. Gather weather reports—if damage was caused by a storm, this proves it wasn’t gradual.
3. Challenge their assessment—ask for specific evidence supporting their denial.
4. If needed, escalate with a public adjuster or attorney.

I made an insurance claim, and now my premiums are going up. Is that legal?

Insurance companies can raise rates after a claim, but in Texas, they can’t increase premiums just because you inquired about coverage (unless you filed an actual claim).

• Check state regulations—Texas law (PDF) protects homeowners from unfair premium hikes.
• Ask your insurer for an explanation—they must justify rate increases.
• Shop around for better coverage—some companies penalize claims less than others.

Need Expert Help With Your Claim? Contact YPA Today!

If any of these scenarios sound familiar, you don’t have to fight alone. YPA’s public adjusters specialize in getting homeowners the payouts they deserve—without unnecessary delays, lowball offers, or bad faith tactics.

📞 Call us today at (682) 267-0336 for a free consultation and let’s get your claim moving in the right direction!

You Deserve a Fair Settlement

A denied or underpaid claim can feel like a dead end, but it doesn’t have to be. If your insurance company is delaying, underpaying, or refusing to respond, you have options—and you don’t have to fight alone.

Need Help? Contact YPA Today

Our experienced public adjusters take on the insurance companies so you don’t have to. Call us at (682) 267-0336 now for a free consultation and let’s get your claim moving in the right direction.