Lancaster County is home to a wide mix of properties, historic rowhomes in the city, farmhouses spread across the county’s rural townships, and newer developments near Manheim and Ephrata. Whatever the type of home, homeowners pay their premiums expecting their insurer to be there after a fire, storm, or water damage event.
When a homeowner’s claim is denied or undervalued, our attorneys at HGSK Law Firm are here to review your case and see if your insurance company is acting in bad faith. Your insurance company should work for you; don’t let them take advantage of you.
Homeowners Insurance Denials in Lancaster County
Lancaster County’s older housing stock and rural properties bring their own challenges. Insurers sometimes point to age-related wear on roofs, foundations, or plumbing systems to deny claims that homeowners believe should be covered as sudden, covered losses. Severe thunderstorms, hail, and winter ice have also driven a steady stream of roof and water-damage claims across the county, and insurers do not always handle them fairly.
Common Reasons Homeowners’ Claims Are Denied
Homeowners in our area often hear one of the following when a claim is refused:
- The damage is attributed to “wear and tear” or lack of maintenance, rather than a covered event
- Water damage is classified as a gradual leak instead of a sudden pipe burst
- The loss is blamed on flooding, which is typically excluded from standard homeowners’ policies
- The claim exceeds policy limits or coverage sublimits
- Mold or pre-existing damage exclusions are applied broadly
An insurer is entitled to investigate and apply policy language, but it is not entitled to deny a claim on a whim. Insurance companies are businesses, and their priority is rarely to put their clients’ financial interests first.
Recognizing Bad Faith in a Homeowners’ Claim
Some patterns suggest an insurer may not be dealing with a homeowner fairly, including delayed inspections, adjusters who spend only minutes assessing significant damage, lowball repair estimates that don’t match contractor quotes, or repeated requests for the same documentation without progress toward a decision. Homeowners who feel their claim is being mishandled can also file a complaint with the Pennsylvania Insurance Department, which will forward the complaint to the insurer for a response.
What the Law Requires and What It Allows Homeowners to Recover
Pennsylvania doesn’t leave bad faith insurance conduct unaddressed. Under 42 Pa.C.S.A. § 8371, a homeowner has to clear two hurdles to hold an insurer accountable:
- Showing the insurer had no reasonable basis for denying the claim, and
- Showing the insurer either knew that the basis didn’t exist or simply disregarded the risk that it didn’t
Once those elements are met, the available remedies go well beyond the original claim amount. A court can add interest on what should have been paid, impose punitive damages to penalize the insurer’s conduct, and order the company to cover the homeowner’s attorney’s fees and court costs.
For a homeowner who has already absorbed the cost of a denied repair, that combination can make pursuing a bad faith claim worth far more than simply appealing the original decision.
Documenting Your Homeowners’ Claim
Photograph the damage before repairs begin, keep every letter and email from the insurer, and get an independent contractor estimate to compare against the insurer’s figures. Save receipts for any temporary repairs or emergency housing costs as well. This documentation often becomes critical if a denied or underpaid claim needs to be challenged later on.
Getting Help After a Homeowners Insurance Denial in Lancaster
If your homeowners’ insurance claim was denied, delayed, or underpaid, our firm can review your policy and the insurer’s handling of your claim to determine whether you have grounds for a bad faith action. When your insurance company has wronged you, we handle all aspects of the case; you never have to speak to the insurance adjuster again. To discuss your claim with our attorneys at HGSK Law Firm, call 267-551-8782 or contact us online for a free consultation.