4 Reasons Insurance Companies May Deny Your Fire Claims in Texas


When a fire damages a home or a commercial space, it will devastate owners financially, mentally, and physically. Yet, as a responsible homeowner or businessperson, you’d immediately file your insurance claim only to see that the insurance company has denied your fire claims or given you a lower settlement than expected.

Now, this can be stressful because you’d think that the insurer will support you at such a time when you’ve diligently paid all your premiums throughout the years. Unfortunately, this is not the case because insurers will try to find every reason to give you a low ball offer or deny your claim altogether.

This is why working with an experienced public insurance adjuster who can help you with all your insurance needs is so important. Nevertheless, here are some reasons your fire claim may be underpaid or outright denied.


Arguably the biggest reason for fire claim denial is insufficient coverage. This may mean that the type of accident that occurred isn’t covered by your homeowner’s or business insurance policy. This could also mean that you are only covered for the damage through the flames, not the subsequent smoke or water damage from the sprinklers.

the person is speaking on the phone.

While the insurance company will only provide money for the coverage in your legal contract, they may also wrongfully deny your fire claims. Therefore, reading your insurance policy before signing on the dotted line is very important. You should also hire a public insurance adjuster to help you understand your policy’s various terms and conditions and see whether you’re being wrongfully denied on your insurance claim.

Suspected Fraud

Fraud is another way insurers deny fire claims. They will go to lengths to prove that the fire was intentionally lit on your property to file a claim and extort money from the insurer.

This can lead to a long drawn-out process that would require the involvement of courts to prove whether arson was a factor. In such cases, you should seek adequate legal representation who can provide sufficient evidence in court to back your claim. The last thing you’d want is for the insurer to successfully prove fraud when you didn’t do it!

a person using an iPad.

Valuation Dispute

Insurers also use valuation disputes to deny a fire claim. For example, you may file an insurance claim based on the material cost required to renovate or rebuild your home, but the insurer may find that your home isn’t worth the amount you’re claiming. In such instances, your appeal will be denied on the valuation dispute.

Even though it might be difficult to calculate the accurate value of your property, you must ensure that you have adequate documentation and records of when the property was built. If you’ve done significant maintenance and upkeep to maintain the value of your home, make sure to have records of that as well. Take pictures of the condition of your house before and after the fire.

Hiring an insurance adjusting service can be handy because these professionals can help you document such things. Always remember, you shouldn’t settle for a lowball offer. You know the damage that has been done to your home, and you shouldn’t settle for anything less than you deserve.

an older adult talking on the phone.

Damage Disputes

As mentioned above, not every policy covers damages due to other factors outside the fire. For example, some insurers will only cover damage that occurred due to the flames and not any damage caused by external factors that were indirectly caused by the fire.

This can lead to many damage disputes that lead to the insurer denying your fire claim. These disputes can be tricky to resolve, and it is best to have a solid understanding of your policy and coverage.

You can also consult with an experienced public insurance adjuster who can help you understand your coverage and will also help you to get the settlement you deserve. You should also be aware of your legal rights to dispute the claim and should do so if your insurer is hell-bent on denying your claim or presenting you with a lowball offer.

Get Insurance Claim Assistance in TX

If you’re looking for reliable, transparent, and experienced public adjusters, check out Morgan Elite Specialist Services. We have a team of highly professional public adjusters in Texas who will go above and beyond to help you with all your fire claims and insurance needs.

With over 75 years of combined experience in handling complex residential claims and commercial claims, we will do our best to ensure you receive a swift and fair settlement.

We can help you with different aspects, including collecting and filing documentation, recording damage evidence, and negotiating with the insurer for a fair settlement. Whether you’re looking for an insurance appraiser, damage consultant, or public adjuster for your claim, we can help.

Report a claim now or contact us today for more details.