When a property insurance claim is denied, most policyholders assume the insurer must be right. The denial letter is formal, technical, and often framed as final. In reality, many Alberta property claim denials are based on narrow interpretations, incomplete investigations, or positions that can be challenged.

Insurers do not need to deny a claim outright to protect their bottom line—but when they do, the stakes are high. Understanding why property claims are denied, and how those denials can be pushed back against, is critical before you walk away or accept a reduced outcome.

Why Property Claims Are Denied in Alberta

Property insurance denials usually fall into predictable categories. They are rarely about what actually happened and more about how the insurer characterizes the loss.

Common Reasons Alberta Insurers Deny Property Claims

1. Alleged Policy Exclusions

The most common reason given for denial is an exclusion buried deep in the policy wording.

Insurers may rely on exclusions for:

Wear and tear or deterioration
Gradual damage
Faulty workmanship or materials
Mold or contamination

Exclusions are often applied broadly, even when the damage was triggered by a covered event.

2. Claims That the Damage Was “Pre-Existing”

Insurers frequently argue that damage existed before the reported loss.

This can include:

Roof damage attributed to age rather than storm impact
Foundation or water issues labeled as long-standing
Electrical or plumbing problems said to predate the incident

Pre-existing damage does not automatically defeat coverage—especially when a sudden event made the problem worse or exposed it.

3. Failure to Meet Policy Conditions

Denials are sometimes based on alleged breaches of policy conditions.

Common allegations include:

Late reporting of the claim
Failure to mitigate damage
Inadequate documentation
Unauthorized repairs

These arguments often ignore the reality of emergency situations where immediate action is required.

4. Disputes Over Cause of Loss

If the insurer disputes what caused the damage, coverage can be denied entirely.

Examples include:

Water damage blamed on seepage rather than burst pipes
Fire damage attributed to excluded electrical issues
Wind damage characterized as normal wear

Cause-of-loss disputes often depend on expert opinions that are not neutral.

5. Claims That the Loss Is Below the Deductible

In some cases, insurers deny claims by asserting that the value of damage falls below the deductible.

This position often relies on:

Undervalued repair estimates
Limited scopes of work
Exclusion of related damage

Underestimating the loss can be just as effective as denying it outright.

When Property Claim Denials Are Wrong

A denial letter is not the final word. Insurer decisions may be wrong when:

The exclusion relied upon does not clearly apply
A covered peril triggered or contributed to the loss
The investigation was incomplete or biased
Policy wording is ambiguous
The insurer failed to explain the denial properly

In Alberta, insurance contracts are interpreted in line with their wording, purpose, and fairness—not simply the insurer’s preferred interpretation.

How to Fight Back Against a Denied Property Claim

Challenging a denial requires more than disagreement. It requires a structured response.

Key steps include:

Careful review of the policy wording
Examination of the insurer’s investigation and evidence
Independent expert opinions, where necessary
Reframing the cause of loss based on facts
Preserving limitation periods and notice requirements

Many denials change once insurers are required to justify their positions formally.

Why Legal Review Makes a Difference

Property claim denials are legal disputes dressed up as administrative decisions. Insurers rely on policyholders not challenging them.

A dedicated Alberta property insurance lawyer can:

Identify weaknesses in the insurer’s reasoning
Challenge improper reliance on exclusions
Push back against biased expert reports
Escalate the dispute when informal resolution fails
Protect your rights before deadlines expire

Once a denial is scrutinized legally, insurers often reassess their position.

The “Home Field” Advantage

Alberta property claims are influenced by local realities: extreme weather, aging infrastructure, and regional construction standards. These factors matter when determining cause, scope, and value of loss.

At Shiv Ganesh Professional Corporation, we represent policyholders only. We understand how property claims are denied in practice—and how to challenge those denials effectively.

Don’t Accept a Denial Without Advice

Walking away from a denied claim can mean absorbing losses that should have been covered. Many policyholders only learn later that their claim could have been challenged.

If your Alberta property insurance claim has been denied, get advice before giving up or accepting a reduced outcome.

Had your property insurance claim denied in Alberta?

Contact us today for a free consultation. We’ll review the denial, explain whether it can be challenged, and you pay no legal fees unless we recover money for you.