What is a denied claim in homeowners insurance?
Short answer. A denied claim is one the insurer has reviewed and decided not to pay, usually because it concluded the damage is not covered, was caused by an excluded event, or does not meet a policy condition. It differs from a partial denial, where some items are paid and others are not, and from a covered claim that pays nothing because the damage is less than the deductible.
Outcomes that get called denied
- Full denial: nothing is covered, for example the insurer finds no storm damage or applies an exclusion.
- Partial denial: the insurer pays some items, like gutters, but denies others, like the roof.
- Below deductible: the damage is covered, but the estimate is less than the deductible, so no check is issued.
- Closed without payment: the insurer closed the file because it could not inspect or did not receive requested documents.
- Reservation of rights: not a denial yet. The insurer is investigating while reserving the right to deny.
What the denial letter should tell you
Look for the policy provisions relied on, the facts found, and whether the denial is total or partial. Under Georgia's unfair claims settlement law, the insurer must give a reasonable explanation of the basis for a denial when you ask in writing, so request one if the letter is vague.
Does a denied claim stay on your record?
Often, yes. Insurers record reported claims in shared claim history databases, including some that paid nothing, which is one reason to have a roof inspected before filing. See whether a claim raises premiums.
What you can do
- Request the estimate, photos and any engineer report.
- Answer the stated reason with evidence and ask for a reinspection.
- Use appraisal for disputes over the amount.
- File a complaint with the Georgia Commissioner if the handling seems unfair.
The full playbook is in roof claim denied: what to do.