Fight for compensation
Public adjuster Neil May took on Johnson's case after the insurance company, Liberty Mutual, refused to pay her claim. He believes Johnson's loss was the result of an accident.
"The just resolution would be that [Liberty Mutual] would cover this loss, and they'd rebuild [the home] to pre-loss condition," May told 8 News Now in a story broadcast Oct. 21.
One point of contention with the home insurance claim is the cause of the blaze. Johnson believes the fire started on the back wall of the home where the solar system hardware was located, but she told 8 News Now an inspector from Liberty Mutual found a cigarette butt in the backyard and determined it to be the fire's origin.
Fires caused by cigarette use are typically considered accidental and therefore covered by insurance — but if the fire was set on purpose, an insurer won't cover the damages.
Liberty Mutual hired an attorney to represent it amid its investigation of her claim. The attorney examined Johnson under oath in December 2023. According to a transcript obtained by 8 News Now, Johnson admitted to making a mistake filling out insurance paperwork, including the age and value of a refrigerator she says was destroyed in the fire. Misrepresentations can result in a claim being tossed.
There's also the matter of whether Johnson's policy was still in effect if she was considered to be running a business out of her home.
It's unclear from 8 News Now's reporting precisely why Johnson's claim was denied, however, it appears that it could have been for a number of reasons. Liberty Mutual declined to comment when contacted by the broadcaster.
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Johnson's ordeal started when her insurer said she was running a business out of her home, 8 News Now reports. In her case, she denies doing so.
Homeowners who run small businesses from their homes should notify their insurance company and explore appropriate coverage options. While some policies may cover a small amount of business property, not all do. Even if a policy does offer some coverage, it may not be enough to cover the value of a home business.
Depending on a homeowner's coverage, they may need to purchase a separate business policy or adjust their current policy. Failure to disclose a home business can result in canceled policies, denied claims or other legal complications.
Homeowners who face challenges to a claim may want to consider hiring a public adjuster who can advocate for them. A public adjuster is a licensed professional who represents policyholders during the insurance claim process. They can help assess damage and negotiate with insurance companies. Hiring a public adjuster can be especially helpful if a claim is complex or has been denied.
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