People rely on insurance when something unexpected goes drastically wrong. Homeowner’s insurance, for example, helps pay for expenses after substantial damage to a residence caused by inclement weather or criminal activity. People often don’t have enough money set aside to fix a home and pay for alternate shelter during the work on their residence.
Years of making premium payments and absorbing marketing messages may give people a false sense of confidence when they file an insurance claim. Unfortunately, many policyholders end up getting the runaround from insurance providers when they need financial support. Insurance companies sometimes act in bad faith by trying to avoid their responsibility to policyholders.
One of the ways companies may try to avoid paying what they should on claims is by dragging the process out for as long as possible. Thankfully, Florida State statutes limit the ability of insurance companies to delay approving and paying insurance claims.
Claims are subject to a strict timeline
Florida state law establishes numerous specific timelines for any insurance claim brought by a policyholder. There are deadlines that apply to both the policyholder and the insurance company. Policyholders have to file an initial claim within a year of the date of loss. They have up to 18 months for supplemental claims after the initial filing.
The insurance company has to respond to that initial claim within seven days in most cases. The insurance company may send specific documents for the policyholder to fill out and return. After receiving the official paperwork, the insurance company has seven days to begin its investigation.
The company has up to 30 days to look at a home for signs of property damage. The insurer typically has 60 days to either deny or pay the claim unless there are extreme extenuating circumstances.
Insurance companies attempting to secure exceptions to those rules usually need compelling evidence of unusual extenuating circumstances. In scenarios where insurance providers refuse to respond, delay their investigations or put off issuing payment, a policyholder may have grounds for a bad faith insurance lawsuit.
Holding insurance providers accountable for violating Florida statutes can lead to claim approval and additional consequences for an insurance company that is acting in bad faith. Policyholders who learn about the law may be able to recognize when they need help addressing inappropriate insurance company practices.