Home Insurance Forum

What can a homeowner do if they discover their homeowners insurance settled with another policyholder on the same type of claim for which they were denied coverage? For example, candle soot damage — suppose there was substantiation, like the stub of a settlement check, clearly stating "for damage caused by candle soot" proving that the other claim was indeed settled?

Cathy, Texas

Dear Cathy,

I spoke with Mark Hannah of the Texas Department of Insurance. He says you should file a complaint with the department. You can either call the department's toll-free hotline, (800) 252-3439, and have a complaint form mailed to you or visit the department's Web site and file the complaint online.

The department will examine the complaint carefully and contact you if it needs more information. It will also send a certified letter to the insurance company asking for its side on the matter — in your case, the department will want to know why the claim was denied. Complaints are usually resolved within 45 days.

Hannah says that in resolving property/casualty complaints, the insurance department recovered more than $12 million for consumers in 1997.

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