Can I Sue My Own Homeowners Insurance?

Why this the information below relevant to your contracting or mitigation business?

Insurance claim issues often show up on your jobsite before they ever get resolved on paper. When a claim stalls, contractors and mitigation companies are left navigating uncertainty alongside the homeowner.

This article provides general information about insurance disputes and legal options homeowners may have. Members can use this knowledge to better understand claim challenges, set expectations with customers, and recognize when a homeowner may need professional insurance or legal guidance. Members can reach out to o recommend PHCCWA Gold Partner Jack Law Firm with homeowner insurance questions or issues.

Homeowners insurance is supposed to be your safety net when things go wrong.

But sometimes, instead of coming through, your insurance company drags its feet, lowballs the payout, or flat-out denies your claim. 

And that’s when people start wondering if they can sue their own homeowners insurance.

It might sound a bit dramatic, but you’re not alone in wondering that. The truth is, yes, you can take legal action against your own insurer if they don’t hold up their end of the deal.

This article will explain if you can sue your own homeowners insurance.

When Can You Sue Your Homeowners Insurance

You can sue your insurance company if they don’t hold up their end of the deal. They have a legal duty to act in good faith, which means treating your claim fairly and honestly. 

But some companies bend the rules or flat-out ignore them.

You might have grounds to sue if your insurer:

• Denies a valid claim without a solid reason
• Delays your payment for no clear cause
• Offers an amount that’s far below what your damage is worth

It all comes down to “bad faith.” 

When an insurance company acts in bad faith, it basically means they’re not playing fair. For example, they might blame you for the damage when it’s clearly covered or keep asking for unnecessary paperwork just to stall. 

These tactics are more common than you think, and they’re not okay.

If you’ve followed all the rules, paid your premiums, and your insurer still won’t pay, suing might be the next step. 

But don’t rush there just yet. There are a few things you should do first.

What To Do Before Suing Homeowners Insurance

Jumping straight to a lawsuit can be expensive and time-consuming. So it’s smarter to take a few steps first to give your insurance company a fair shot to fix the situation:

#1 Review Your Policy

Before anything else, grab your insurance policy and read it carefully. 

Yeah, it’s not the most thrilling read, but it’s important. 

Look for the sections on coverage, exclusions, and claims procedures. 

You might find that your issue falls into a gray area or maybe it’s clearly covered, and the insurer just didn’t honor it. 

Knowing exactly what’s written in your policy gives you solid ground to stand on.

Also Read: Can you sue someone for pain and suffering?

#2 Keep Documentation

This part is crucial. Keep every single piece of communication between you and your insurance company. Emails, texts, letters, claim forms, repair estimates – everything. 

If you had phone calls, jot down the date, time, and who you spoke to. 

The more detailed your records, the stronger your case becomes.

You’d be surprised how useful these notes can be later. Documentation helps you show a pattern, like if they keep stalling or contradicting themselves. 

And if things do go legal, you’ll be glad you kept a paper trail.

#3 File An Appeal

Most insurance companies have an internal appeals process. If they denied your claim or paid too little, don’t hesitate to appeal. 

Write a clear letter stating why you think their decision is wrong and include copies of any evidence you have. 

Sometimes, a claim gets fixed at this stage without needing to go to court.

It’s not uncommon for insurers to backtrack once you show them you’re serious and have your paperwork in order.

#4 Contact Your State Insurance Department

Still getting nowhere? Reach out to your state’s insurance department.

Every state has one. They regulate insurance companies and handle complaints.

They might not force your insurer to pay up, but they can pressure them to respond, open an investigation, or at least give you clear next steps. 

Plus, your complaint becomes part of their official record, which can add weight if you end up suing.

Also Read: How to fight a false accident report

How To Sue Your Homeowners Insurance Company

Suing your own insurance company might sound extreme, but sometimes it’s the only way to get what you’re owed.

The first step is usually hiring an attorney who specializes in insurance bad faith or slip and fall cases. These lawyers deal with situations like yours all the time.

The good thing is most of them work on a contingency basis. 

That means you don’t pay anything upfront and they get paid only if you win. The lawyer will review your case, gather evidence, and file a lawsuit against the insurance company for breach of contract or bad faith.

Once the lawsuit starts, the company will have to respond. 

Some cases settle quickly, while others take time. 

If your case goes to court, your lawyer will present your side, showing how the insurer failed to meet its obligations. 

It can feel intimidating, but remember, you’re not the first person to do this. Courts take bad faith insurance claims seriously, especially when there’s clear proof of unfair treatment.

What You Could Win

If you win your case, you could receive several types of compensation. The most obvious one is the amount your insurer should’ve originally paid for your claim. 

But that’s not all. 

You might also get extra money for:

• Interest for delays in payment
• Reimbursement for your legal fees
• Compensation for emotional distress
• Punitive damages (extra money meant to punish bad behavior)

Basically, if the insurance company put you through unnecessary trouble, the court can make them pay for that, too. The exact amount depends on your state laws and the severity of the insurer’s bad faith actions.

Also Read: Car accident hit on passenger side rear

Alternatives To Going To Court

Not every case has to end up in a courtroom. There are other ways to resolve disputes that are faster and less stressful. 

Mediation is one option, where a neutral third party helps both sides reach an agreement. Arbitration is another, where an arbitrator listens to both sides and makes a decision that’s usually final.

These options can save you time and money, and sometimes they lead to fair settlements. 

However, if your insurer still refuses to play fair, then going to court might be the only way to hold them accountable.

Bottom Line

Suing your homeowners insurance company isn’t something anyone wants to do. It’s usually the last resort after all the polite phone calls, appeals, and “just checking in” emails fail. 

But sometimes, it’s the only way to get what you’re owed.

Know your rights, document everything, and don’t be afraid to push back. Insurance companies count on people giving up when things get tough. 

If you stand firm and follow the right steps, you can absolutely hold them accountable.

So yes, you can sue your own homeowners insurance company. And if they’ve broken their promise to you, it might just be the right move.

Article by Chris Jackman
Chris Jackman, founder of The Jackman Law Firm, has litigated thousands of family law cases, authored a legal book, and spoken at seminars. His firm, with offices in Washington, Texas, and Colorado, is dedicated to client advocacy and community support, donating a portion of fees to scholarships, schools, and charities. Education: Juris Doctor, Creighton University

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