What To Do When Your Insurance Company Won’T Pay Storage Fees

If you’ve recently filed an insurance claim for a total loss vehicle but your insurance company refuses to pay the storage fees, you may be wondering what to do next. Dealing with insurance denials can be frustrating, but you do have options to fight back.

If you’re short on time, here’s a quick answer to your question: You can file a complaint with your state’s department of insurance and provide documentation showing your vehicle was stored at the direction of the adjuster.

You can also request an arbitration hearing and hire a public adjuster or appraiser to fight the denial on your behalf.

In this comprehensive guide, we’ll explore in detail the reasons insurance companies may deny paying storage fees, the documentation you need to fight the denial, steps to file official complaints, using public adjusters and appraisers, legal options, and more.

With the right strategy, you can get the insurance company to reimburse your out-of-pocket storage costs.

Understanding Why Insurance Companies Deny Storage Fee Claims

Dealing with an insurance company that refuses to pay storage fees can be frustrating and overwhelming. However, it’s important to understand the reasons behind their denial. By understanding these reasons, you can better navigate the claims process and increase your chances of getting the reimbursement you deserve.

Vehicle Was Not Stored at Insurance Company’s Direction

One common reason insurance companies deny storage fee claims is if the vehicle was not stored at their direction. Insurance policies typically require that the vehicle be stored at a facility approved by the insurance company in order for storage fees to be covered.

If you chose to store your vehicle at a facility that is not approved by your insurance company, they may deny your claim.

Dispute Over Length of Time in Storage

Another reason insurance companies may deny storage fee claims is if there is a dispute over the length of time the vehicle was in storage. Some policies have specific time limits for storage coverage, and if the vehicle exceeds that time limit, the insurance company may refuse to pay the fees.

It’s important to carefully review your policy and make sure you understand any time restrictions that may apply.

Unreasonable Storage Facility Rates

In some cases, insurance companies may deny storage fee claims if they believe the rates charged by the storage facility are unreasonable. If the insurance company determines that the storage fees are excessive or above the market average, they may refuse to cover the full amount.

It’s important to provide documentation and evidence to support the reasonableness of the storage facility rates.

Lack of Documentation From Insured

Lastly, insurance companies may deny storage fee claims if there is a lack of documentation from the insured. It’s important to keep thorough records of all communication with the insurance company, including receipts, invoices, and any other relevant documents.

Without proper documentation, the insurance company may argue that there is insufficient evidence to support your claim.

It’s important to remember that each insurance company may have its own specific policies and guidelines regarding storage fee claims. If you find yourself in a situation where your claim has been denied, it may be helpful to consult with a legal professional who specializes in insurance claims to help you navigate the process.

Gathering Documentation to Fight the Denial

When your insurance company refuses to pay for storage fees, it can be frustrating and overwhelming. However, there are steps you can take to gather the necessary documentation and fight the denial. By providing solid evidence and communicating effectively with your insurance company, you can increase your chances of getting the storage fees covered.

Obtain Written Confirmation of Storage Instruction

The first step in gathering documentation is to obtain written confirmation of your storage instruction. This can be in the form of an email, letter, or any written communication that clearly states your request for the insurance company to cover the storage fees.

Make sure to keep a copy of this confirmation for your records, as it will serve as proof of your initial request.

Document Communications With Adjuster

Throughout the process, it is crucial to document all communications with your insurance company’s adjuster. This includes phone calls, emails, and any other form of correspondence. Keep a record of the date, time, and content of each conversation or email exchange.

This documentation will help support your case and provide a timeline of your efforts to resolve the issue.

Get Itemized Storage Bills From Facility

To strengthen your case, obtain itemized storage bills from the facility where your belongings are being stored. These bills should clearly outline the fees incurred and the duration of the storage period.

Having detailed invoices will demonstrate the validity and necessity of the charges, making it harder for the insurance company to deny coverage.

Compile Photos Documenting Damage

In addition to storage bills, it is crucial to compile photos that document the damage to your belongings. Take clear and detailed pictures that clearly show the extent of the damage. These photos will serve as visual evidence of the need for storage and the condition of your belongings.

Be sure to organize and label these photos for easy reference.

Remember, the more documentation you have, the stronger your case will be. If possible, gather any additional supporting evidence, such as witness statements or expert opinions, to further strengthen your argument.

By presenting a comprehensive package of documentation, you are more likely to persuade your insurance company to cover the storage fees.

Filing Official Complaints Over Denied Storage Fees

Dealing with an insurance company that refuses to pay storage fees can be frustrating and stressful. However, there are steps you can take to address the issue and potentially get the compensation you deserve.

Filing official complaints is one effective way to escalate the situation and seek resolution.

File Complaint With State Department of Insurance

If your insurance company denies payment for storage fees despite a valid claim, you can file a complaint with your state’s Department of Insurance. This department is responsible for regulating insurance companies and ensuring fair practices.

By filing a complaint, you bring the issue to their attention and they can investigate the matter.

Make sure to provide all necessary documentation, such as copies of your policy, proof of the storage fees, and any correspondence with the insurance company. Be clear and concise in explaining the situation and why you believe the denial of payment is unfair.

The Department of Insurance will review your complaint and take appropriate action if they find any violations.

Report to CFPB If Claim Handling Violates Regulations

The Consumer Financial Protection Bureau (CFPB) is another avenue you can explore if your insurance company’s claim handling violates regulations. The CFPB is a government agency that protects consumers in financial matters, including insurance claims.

They have the authority to investigate complaints and take enforcement actions against companies that engage in unfair practices.

To report your complaint to the CFPB, visit their website at www.consumerfinance.gov/complaint/ and follow the instructions provided. Provide all relevant details, including the insurance company’s name, policy information, and a description of how they denied payment for storage fees.

The CFPB will review your complaint and work towards a resolution.

Notify Insurance Company Executives Via Certified Mail

In addition to filing official complaints with regulatory bodies, it can be helpful to escalate the issue within the insurance company itself. One way to do this is by notifying insurance company executives via certified mail.

This method ensures that your complaint reaches the appropriate individuals and cannot be easily ignored.

In your letter, clearly explain the situation, including the denial of payment for storage fees and any previous attempts to resolve the issue. State that you have filed complaints with the relevant regulatory bodies and express your dissatisfaction with the company’s handling of your claim.

Request a prompt response and resolution to the matter.

Remember to keep copies of all correspondence, including the certified mail receipt, for your records. This can be useful in case you need to provide evidence of your efforts to resolve the issue.

By taking these steps and filing official complaints, you are advocating for yourself and increasing the chances of getting your insurance company to pay the storage fees. Remember to stay persistent and document everything to strengthen your case.

Using Public Adjusters and Appraisers to Dispute Denied Claims

Dealing with denied insurance claims can be a frustrating experience, especially when it comes to storage fees. Fortunately, there are options available to help you dispute these denials and ensure that your insurance company covers the necessary costs.

Two professionals who can assist you in this process are public adjusters and independent appraisers.

Public Adjusters Can File Claims on Your Behalf

When your insurance company refuses to pay storage fees, a public adjuster can step in and advocate for you. Public adjusters are licensed professionals who work on behalf of policyholders to negotiate fair settlements with insurance companies.

They have a deep understanding of insurance policies and can help navigate the complex claims process.

By hiring a public adjuster, you can ensure that your claim is properly documented and presented to the insurance company. They will gather all necessary documentation, assess the value of your claim, and negotiate with the insurance company on your behalf.

Their expertise can greatly increase your chances of successfully disputing denied claims and obtaining the coverage you deserve.

Independent Appraisers Can Counter Insurance Valuations

One common reason for denied storage fee claims is a disagreement between the policyholder and the insurance company regarding the value of the items in storage. In such cases, an independent appraiser can provide an unbiased assessment of the value of your belongings.

Independent appraisers are professionals who specialize in determining the value of personal property. They have extensive knowledge of market trends and can accurately assess the worth of your items. By hiring an independent appraiser, you can challenge the insurance company’s valuation and present a more accurate assessment of the value of your belongings.

Having an independent appraiser on your side can help level the playing field when disputing denied claims. Their expertise can provide solid evidence to support your case and increase the likelihood of a successful resolution.

Shop Around to Find Experienced Professionals

When it comes to hiring a public adjuster or an independent appraiser, it is essential to do your due diligence and find professionals with experience in handling denied insurance claims. Look for individuals or firms with a proven track record of success and positive client testimonials.

Consider reaching out to local insurance associations or seeking recommendations from trusted friends or family members who have been through a similar situation. Additionally, websites such as the National Association of Public Insurance Adjusters (www.napia.com) and the Appraisal Institute (www.appraisalinstitute.org) can provide valuable resources and directories to help you find qualified professionals in your area.

Remember, when disputing denied claims, having experienced professionals on your side can make a significant difference. They can navigate the complexities of the claims process, advocate for your rights, and ultimately increase your chances of getting your insurance company to pay the necessary storage fees.

Taking Legal Action Against Insurance Provider

Dealing with an insurance company that refuses to pay storage fees can be frustrating and overwhelming. However, there are steps you can take to fight back and ensure you receive the compensation you are entitled to.

Taking legal action against your insurance provider can be a viable option in such situations. Here are three possible courses of action:

1. File Suit in Small Claims Court Without Attorney

If the amount in dispute is within the small claims court limit, typically ranging from $2,500 to $10,000 depending on the jurisdiction, you may consider filing a lawsuit without hiring an attorney. Small claims court is designed to handle cases quickly and efficiently, allowing individuals to represent themselves.

This can be a cost-effective option, as you won’t have to incur legal fees.

Before filing a suit, gather all relevant evidence such as receipts, correspondence with the insurance company, and any other documentation supporting your claim. Present your case clearly and concisely in court, emphasizing the insurance company’s refusal to pay the storage fees despite the terms of your policy.

Be prepared to provide any other evidence that substantiates your claim.

Pro tip: Research the specific small claims court rules and guidelines in your jurisdiction to ensure you follow the correct procedures and meet all necessary deadlines.

2. Hire Lawyer to File Bad Faith or Breach of Contract Suit

If the amount in dispute exceeds the small claims court limit or if you prefer professional representation, hiring a lawyer may be a suitable option. An attorney experienced in insurance law can help you navigate the complexities of filing a bad faith or breach of contract suit against your insurance company.

A bad faith claim alleges that the insurance company has acted unreasonably or dishonestly in handling your claim. A breach of contract claim asserts that the insurance company has failed to uphold its contractual obligations, including paying for storage fees as outlined in your policy.

Consult with a lawyer who specializes in insurance disputes to evaluate the strength of your case and determine the best course of action. They will guide you through the process, gather evidence, and negotiate with the insurance company on your behalf.

Keep in mind that hiring a lawyer can be costly, so it’s important to weigh the potential benefits against the financial implications.

3. Join Class Action Lawsuit With Other Wronged Claimants

If you discover that multiple policyholders have faced similar issues with the same insurance company, joining a class action lawsuit may be worth considering. A class action lawsuit is filed by a group of individuals who have suffered similar harm due to the actions of a common defendant, in this case, the insurance company.

By joining forces with other claimants, you can increase the collective strength of your case and share the legal costs. Class actions often attract media attention, putting pressure on the insurance company to address the issue and potentially leading to a more favorable outcome for all those involved.

Before joining a class action lawsuit, consult with a lawyer who specializes in this area to understand the potential risks and benefits. They will guide you through the process of joining the lawsuit and ensure your rights are protected.

Remember: Taking legal action against your insurance provider should be a last resort. Before pursuing legal avenues, exhaust all other options such as negotiation, mediation, or filing a complaint with the appropriate regulatory body.

It’s also important to be aware of any applicable statutes of limitations that may impact your ability to file a lawsuit.

For more information on insurance-related legal matters, visit the Insurance Journal website, a trusted source for industry news and insights.


Dealing with a wrongful denial of storage fees can be incredibly stressful and costly. But by understanding your rights, filing official complaints, hiring professional help, and exploring legal options, you can successfully fight back when an insurance provider fails to pay.

With persistence and the right evidence, you can force your insurance company to do the right thing and reimburse you for reasonable storage charges you incurred due to an accident. Don’t let them take advantage of you – you deserve to be made whole after a loss.

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