A fire can destroy everything—your home, your possessions, your sense of security. The one thing that’s supposed to protect you is your insurance policy. But when an insurance company denies your fire damage claim or offers an unfairly low settlement, the devastation doesn’t end. You’re left rebuilding with your own resources while your insurer profits.

Siddons Law Firm fights insurers who use bad faith tactics to deny or underpay fire damage claims. We serve homeowners and business owners across Southeastern PA, Southern NJ, and the Eastern Shore of Maryland. If your fire claim has been denied, delayed, or severely underpaid, we can help you recover the full compensation you deserve.

The Most Common Bad Faith Tactics in Fire Damage Claims

Insurance companies use several deceptive strategies to avoid paying legitimate fire damage claims. Understanding these tactics helps you recognize when your insurer is acting in bad faith.

1. Blaming “Electrical Issues” or Equipment Failure

One of the most common denials in fire cases is the claim that the fire originated from faulty wiring, a malfunctioning appliance, or inadequate maintenance—and that these issues fall outside the policy’s scope. Insurers will hire engineers who conveniently reach this conclusion, even when evidence is inconclusive.

Red flag: Your insurer concludes the fire was “caused by your negligence” before a thorough investigation of the actual ignition source.

2. Excluding Smoke and Soot Damage

Many fire damage claims include smoke and soot damage throughout the home—sometimes to areas that weren’t directly touched by flames. Insurers often try to exclude this secondary damage, claiming it’s not covered under the policy language or arguing it’s “pre-existing.”

3. Misinterpreting Policy Language

Your policy contains dozens of conditions, exclusions, and definitions. Insurers exploit ambiguous language to deny claims. For example, they may argue that damage from firefighting efforts falls under “water damage exclusions” or that certain materials aren’t “covered property.”

4. Lowball Settlement Offers

An insurer may make a quick, inadequate offer knowing you’re desperate to rebuild. Many homeowners accept because they’re exhausted and need immediate funds. Bad faith occurs when the insurer knows the offer is far below the reasonable claim value.

5. Unreasonable Investigation Delays

Insurance law requires prompt investigation and response. When an insurer drags out investigation for months without explanation, denies access to the damaged property, or ignores your documents and photos, they may be acting in bad faith.

6. Refusing to Cover Code Upgrades

When rebuilding after a fire, local building codes may require upgraded materials. Some insurers refuse to cover these upgrades, claiming they’re “betterments” outside the policy’s scope.

Geographic Service Area: We Serve Your Community

Fire damage doesn’t wait for office hours. Siddons Law Firm serves homeowners and business owners throughout:

• Southeastern Pennsylvania: Chester County, Delaware County, Montgomery County, Bucks County, Philadelphia
• Southern New Jersey: Camden County, Burlington County, Gloucester County, Atlantic County, Cape May County
• Eastern Shore Maryland: Talbot County, Dorchester County, Wicomico County, Worcester County

If your home or business is in these regions and your fire damage claim was denied or underpaid, we can help.

Why Trust Siddons Law Firm?

Siddons Law Firm specializes in insurance bad faith claims. We have extensive experience fighting the largest insurance companies in the nation. We understand how insurers train adjusters to deny claims, what evidence proves bad faith, how to calculate the true value of your claim, and your rights under state insurance laws.

Under Pennsylvania law (42 Pa. C.S. § 8371), insurers must act in good faith and handle claims fairly. When they don’t, you can recover your full claim plus punitive damages. New Jersey law (N.J.S.A. 17:29BB-1) imposes strict penalties on insurers for bad faith practices, including treble damages and attorney’s fees. Maryland law (Maryland Insurance Article §27-1001) similarly requires fair claims handling and provides remedies for bad faith denials.

Learn more about your rights: Pennsylvania Bad Faith Insurance | New Jersey Bad Faith Insurance | Maryland Bad Faith Insurance

Frequently Asked Questions

How long do I have to sue my insurance company for bad faith?

The statute of limitations varies by state. In Pennsylvania, you typically have four years to file a bad faith lawsuit. In New Jersey and Maryland, timelines differ. Don’t delay—contact us to protect your rights.

Can I recover more than my original claim amount?

Yes. If we prove bad faith, you may recover your full claim, plus punitive damages and attorney’s fees. In some cases, this multiplies your recovery significantly.

Do I need to hire a lawyer, or can I negotiate with the insurance company myself?

You can negotiate directly, but insurance companies employ professional adjusters and legal teams trained to minimize payouts. An experienced bad faith attorney levels the playing field and significantly increases your chances of a full recovery.

Don’t Accept a Bad Faith Denial

Your insurance policy is a contract. When an insurer violates that contract through bad faith practices, you have the legal right to fight back. Siddons Law Firm fights to recover what you’re owed.

If your fire damage was caused by a storm, see our storm damage bad faith guide. If your home experienced fire-related water damage, see our water damage bad faith guide.

Call us today at 610-255-7500 for a free, confidential consultation.

No fee unless we recover for you.