Homeowner Primer

Your Rights as a Homeowner Policyholder

Your carrier has a legal duty to you that’s far more specific than most homeowners realize. These are the rights most adjusters hope you never read — pulled from state Unfair Claims Settlement Practices Acts, federal precedent, and the language in your own policy.

This is not legal advice. Laws vary by state and your specific policy matters. Use this as a starting map; for a specific dispute, consult a licensed attorney in your state.

The eight rights carriers don’t advertise

RIGHT #01

To a written explanation when they deny

If a carrier denies any part of your claim, the NAIC Model Unfair Claims Settlement Practices Act — adopted in some form in every state — requires that the denial be in writing and cite specific policy language or facts supporting the denial. "Your claim is denied" with no substance violates this duty in most jurisdictions.

How to use it: Request the written denial rationale, in writing, referencing the policy provision relied upon. Keep the response — it's foundational if you need to appeal or escalate.
RIGHT #02

To prompt investigation and decision

Most states require carriers to acknowledge a claim within 10–15 days, begin investigation promptly, and make a coverage decision within 15–30 days of receiving the proof of loss. Unreasonable delay is itself a violation — even if they eventually pay.

How to use it: Document every date — when you submitted, when they acknowledged, when each delay started. Bad-faith claims turn on the timeline.
RIGHT #03

To choose your own contractor

No carrier can legally force you to use their "preferred" contractor or "direct repair program" partner for a property claim. The work is yours; who you hire to do it is your choice. A carrier's vendor list is a convenience, not a mandate.

How to use it: If pressured, ask for the specific policy language requiring their contractor. There isn't any. Decline politely and bring your own estimate.
RIGHT #04

To match materials (in most states)

When partial damage occurs — say, one slope of your roof — most state laws and a "matching statute" interpretation require the carrier to pay for the repair to match the undamaged portion. If they say "we'll pay to replace 12 shingles," you likely have a matching-statute argument for the whole slope.

How to use it: Ask specifically: "Does my state or policy require matching materials for partial losses?" Their answer (and any written backup) is your starting point.
RIGHT #05

To full Overhead & Profit (O&P) when three trades are needed

Industry convention and many court rulings hold that if a repair requires three or more trades to coordinate (carpenter, roofer, plumber, etc.), the homeowner is entitled to a General Contractor's overhead and profit — typically ~20% on top of the direct cost. Carriers routinely strip O&P from estimates even when it applies.

How to use it: Count the trades. If it's three or more, push back on any estimate without O&P.
RIGHT #06

To NOT have labor depreciated (in many states)

In Hensley v. State Farm (6th Cir. 2020), the court ruled that under Kentucky law, insurers cannot depreciate labor costs when calculating actual cash value. Similar rulings apply in other states. Labor isn't a physical thing that wears out — depreciating it is a paper trick that costs you thousands.

How to use it: If your estimate shows depreciation on line items for labor (not just materials), cite your state's rule or ask your carrier to justify. Many quietly correct when pushed.
RIGHT #07

To Additional Living Expenses (ALE) during displacement

If your home is unlivable during repair, your ALE / Loss of Use coverage pays for reasonable alternative housing, additional food costs above your normal grocery spend, and related expenses — for the time the home is unlivable or until your policy limits are exhausted. Carriers often underpay or delay ALE.

How to use it: Keep every receipt. Submit regularly. Don't accept "we'll true-up at the end" — demand ongoing payment.
RIGHT #08

To appeal, reopen, or invoke appraisal

Most policies include an Appraisal clause — a binding, low-cost alternative to litigation when you and the carrier disagree on scope or amount. You appoint an appraiser, they appoint one, the two appraisers pick an umpire. The decision is binding and typically resolves in 30–90 days. Carriers rarely mention this option.

How to use it: Find the Appraisal section in your policy. Invoking it formally, in writing, often shifts the carrier's posture within days.

Know your rights. Use them.

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