Your Insurance Company Denied Your Claim. That May Not Be the Final Word.

A denied or underpaid claim feels like a closed door — but Louisiana law gives policyholders real tools to push back, including penalties against insurers who act in bad faith. We've been using those tools for decades.

A denial letter from your insurance company isn't always a legally sound decision. It's often a starting position. At Pennington Law Firm, we review denied and disputed claims to determine whether the insurer had a legitimate basis for its decision — or whether Louisiana law gives you grounds to challenge it and recover more than the original claim amount.

One important distinction worth knowing: this page covers first-party insurance disputes, meaning disputes with your own insurance company over property damage, homeowner's coverage, or commercial policy claims. If you were injured in an accident and you're dealing with the other driver's insurer, that situation is handled under our personal injury practice.

What Louisiana Law Says About Bad Faith Insurance Practices

Louisiana has some of the strongest policyholder protections in the country. Under Louisiana Revised Statutes 22:1973 and 22:1892, an insurer that arbitrarily denies, delays, or underpays a valid claim can be held liable for penalties beyond the original claim value — including penalty damages and attorney's fees.

Most policyholders never know these statutes exist. Insurance companies do.

• RS 22:1892 requires insurers to pay undisputed claims within 30 days of satisfactory proof of loss — failure to do so can trigger a 50% penalty on the amount due, plus reasonable attorney's fees.
• RS 22:1973 imposes a broader duty of good faith and fair dealing on insurers — violations can result in penalties up to two times the damages sustained or $5,000, whichever is greater.
• These penalties apply on top of the claim amount owed — meaning a bad faith denial can cost the insurer significantly more than simply paying the legitimate claim.
• The burden is on us to show the denial or delay was arbitrary — which is why documentation, policy review, and litigation experience all matter.

We evaluate every disputed claim against these standards. If the insurer crossed a line, we know how to make that argument in court.

Who This Page Is For

Insurance coverage disputes arise in more situations than most people realize. We represent policyholders across three common scenarios:

Homeowners With Denied or Underpaid Property Damage Claims

South Louisiana's exposure to hurricanes, tropical storms, and severe weather means property damage claims are a recurring reality here — and so are low offers and disputed adjustments. If your homeowner's insurance company paid a fraction of what repairs actually cost, or denied storm, wind, or water damage outright, that gap is worth examining. The adjuster works for the insurance company. We work for you.

Commercial Property Owners and Business Interruption Disputes

When a covered event forces a business to close or reduces its revenue, business interruption coverage is supposed to bridge that loss. When insurers dispute the scope of that coverage or delay payment, the financial impact compounds quickly. We represent commercial policyholders in coverage disputes and have litigated these claims in Louisiana courts.

Policyholders Facing Denied Liability Claims

If your own liability coverage is being disputed — or if an insurer is refusing to defend or indemnify you under a policy you paid for — that's a coverage dispute with serious consequences. We review the policy language, the denial rationale, and the facts to determine whether the insurer's position holds up.

Why Our Background in Insurance Litigation Matters

Over more than 50 years of practice, Dennis Pennington has handled coverage disputes from both sides — representing policyholders and, at earlier points in his career, working on matters involving insurer positions. That experience isn't just a credential. It shapes how we approach a disputed claim.

We understand how insurance companies evaluate claims internally, what they look for when deciding whether to pay, and where their reasoning is most likely to be vulnerable. When we challenge a denial or a low settlement offer, we're doing it with a clear picture of the other side's calculus.

How We Handle a Disputed Insurance Claim

1. Policy and Coverage Review

We start by reading your policy carefully — all of it. Coverage disputes frequently turn on specific language, exclusions, and endorsements that adjusters interpret in the insurer's favor. We identify what you're actually entitled to under the terms you paid for.

2. Claim Documentation Analysis

We review the claim file, the adjuster's report, and any correspondence from the insurer to understand the basis for the denial or low offer. If the stated reason doesn't hold up against the policy language or the facts, that's where the dispute begins.

3. Demand and Negotiation

In many cases, a well-documented demand letter — one that references the applicable statutes and makes clear we're prepared to litigate — prompts the insurer to reconsider. We pursue fair resolution through negotiation before filing suit when that path is available.

4. Litigation When Necessary

When the insurer won't move, we take the dispute to court. We've litigated insurance coverage cases in Louisiana state courts and federal district courts, and we know how to build a record that supports both the claim value and, where applicable, a bad faith argument under Louisiana law.

A Denied Claim Isn't Always the End of the Road

When the insurer won't move, we take the dispute to court. We've litigated insurance coverage cases in Louisiana state courts and federal district courts, and we know how to build a record that supports both the claim value and, where applicable, a bad faith argument under Louisiana law.