If you take a good look at your property insurance policy, you will most likely find out that your policy excludes coverage for many causes of loss. For property owners, exclusion can be endlessly frustrating. It is not always clear as to what exactly is excluded from coverage under the terms of your policy. Insurance companies are notorious for using complex language that is difficult to understand. You may run into a situation where you believe your damage is covered, but the insurance company refuses to pay you compensation.
One area where this often becomes an issue is when you have to deal with an ensuing loss claim. Many commercial and residential property insurance policies allow some coverage for ensuing losses. There may be cases in which an initial (excluded) loss can create additional damage that will actually be entitled to coverage. It can be very difficult to know where exactly coverage begins.
At The Bennett Law Firm Law Firm, our top-rated Oklahoma bad faith insurance lawyers have extensive experience handling complex ensuing loss property insurance claims. We want to make sure that policyholders have all the knowledge and tools they need to protect themselves. If you feel that your ensuing loss claim was wrongly denied, or if you have any questions about the concept of ensuing loss, please contact our legal team for immediate assistance.
What is an Ensuing Loss?
An ensuing loss is a type of loss that occurs as a consequential result of a previous loss. For example, if your pipe bursts in your basement, it could leave you with water damage. That water damage could itself lead to some mold developing inside of your walls. That mold damage is a step removed from the initial pipe burst. As such, it may be considered an ensuing loss.
In theory, the concept of ensuing loss is not especially complex. However, in practice, ensuing loss claims often lead to intense disputes. There can be considerable confusion over what type of damage is actually covered under an insurance policy. Oklahoma property owners who have sustained additional loss as a result of a previous (excluded) loss should consult with an attorney who can help them determine if coverage is available under their policy. Do not simply assume that you do not have coverage without further investigating the issue.
The Primary Culprits: Mold and Water
Ensuing loss claims come in a wide variety of forms. Virtually any type of initial damage can potentially cause an ensuing loss. Though, for ensuing loss claims, there are two primary culprits that often lead to large additional losses: mold and water. There are many examples of property insurance cases in which a homeowner sustains serious mold or water damage that is excluded from their coverage, yet that initial damage then leads to additional damage that is covered under the policy.
Untangling the web to know exactly what damage is covered can be immensely complicated. Insurance companies know how to take advantage of this inherent ambiguity. All Oklahoma home and business owners should remember this important fact: The insurance company does not get the final say on coverage. You have the legal right to file an appeal.
Know Your Policy
Your ensuing loss clause will likely be listed as an exception to your policy exclusions. It is important to remember that all property insurance policies are different. Ultimately, the specific terms of your policy will govern your claim. Ensuing loss exceptions can be crafted in a variety of different ways. As such, it is imperative that you have a basic understanding of your policy. Under Oklahoma’s industry regulations, insurers are prevented from using unfair and deceptive language to exclude coverage. Yet, policy language can still be difficult to decipher. When disputes over ensuing loss claims arise, the case will typically come down to the specific language included in the policy in question.
Contact Our Oklahoma City Property Insurance Attorneys Today
At The Bennett Law Firm, our Oklahoma property insurance attorneys have deep experience handling ensuing loss damage claims. If you have a claim for an ensuing loss, and you are having trouble getting the full and fair compensation that you believe you are owed under the terms of your policy, we are here to help.
To schedule your free, no-obligation legal consultation, please call The Bennett Law Firm at 405-272-0303. Our attorneys are located in Oklahoma City and we serve communities throughout the region, including in Logan County, Cleveland County, Canadian County, Lincoln County, Oklahoma County, and McClain County.