One In Three Home Insurance Claims Are Denied. Here Is How To Respond.

A contractor removes trees from a roof in Bay View. Photo by Jeramey Jannene.

Homeowners across Wisconsin are filing claims with their insurance companies after severe storms swept through the state earlier this month, leaving damage from wind and hail.

But what happens if a valid damage claim is denied?

In 2023, insurance companies denied more than 37 percent of homeowner claims, according to data from the National Association of Insurance Commissioners. There are hundreds of lawsuits around the country alleging that some of these claims were wrongfully denied.

“There’s this national trend of insurance companies … covering (fewer) claims and covering less damage,” said Ryan Graff, an attorney at MGW Law in Manitowoc.

Policyholders around the country are also seeing higher rates of nonrenewal by insurance companies. In at least one Wisconsin county, the number of homeowners dropped by their insurers was up 150 percent in 2023 compared to five years earlier.

Graff, who specializes in insurance coverage disputes and property damage claims, joined WPR’s “Wisconsin Today” to talk about what homeowners can do after a storm as they move through the insurance claims process and what the options are if a claim is denied.

Get a trusted local inspector to assess damage

After a storm moves through, it’s good to check for damage around your property and take photos. While it may be easy to see flooding in the basement or broken windows, Graff said, it can be harder to know by sight if your roof has sustained damage during a hailstorm.

“I’ve never personally been on my roof. I think most people have not been on their roof. So typically it’s a third party that identifies hail damage,” Graff said.

As a policyholder, you are entitled to hire your own contractor or public adjuster to assess damages rather than relying exclusively on the professionals sent by the insurance company. Graff recommends working with someone locally from Wisconsin.

‘Document everything’

“The insurance company is going to be documenting everything on their side with what’s called claim notes — every phone call, every activity,” Graff said. “You need to do the same.”

This will help if you find yourself in a dispute over a claim. If the insurance company partially or fully denies your claim, it is legally obligated to tell you why.

“You are entitled to an explanation of why they are denying you,” Graff said. “You need to get that in writing.”

Homes in West Allis, Wis. on Aug. 15, 2025 are getting rid of items damaged from recent storms and flooding. Corrinne Hess/WPR

Know your rights as a policyholder

In Wisconsin, insurance policyholders are protected by a law known as the Unfair Claims Settlement Practices Act, or Ins. 611. It requires insurance companies to abide by certain standards like responding promptly to claims and undertaking investigations in good faith. Graff called it the “rules of the road for insurance companies.”

“Policyholders have a lot more rights than they understand,” he said. “Unfortunately, insurance companies don’t treat it that way all the time.”

A denied claim isn’t necessarily the end of the road

If you believe a valid property damage claim has been denied, you have a right to seek counsel and pursue legal action.

“The insurance company has their team of professionals, and there are resources for Wisconsin residents,” Graff said.

He recommended getting help from public adjusters or insurance lawyers as you navigate the claims process, especially if your claim has been denied.

Does filing a claim raise the chances of nonrenewal?

With nonrenewal rates on the rise, policyholders may worry that filing a claim could create a risk that their insurance company won’t renew their policy.

Graff said while that concern is understandable, he doesn’t advise his clients to avoid making a claim for that reason.

“I have yet to see a straight line between somebody making a claim and getting dropped,” he said. “I’m not saying it doesn’t happen. But more often than not, frankly, people get dropped because during the inspection of the hail or the water, the insurance company identifies something totally unrelated to the loss that they didn’t anticipate or know about before.”

What to know about insurance claims as storm season hits Wisconsin was originally published by Wisconsin Public Radio.