Is Your Insurance Claim Too Late?

When is an Insurance Claim Too Late?

While there are no bright line rules about what insurance companies can claim to be “late” claims, there are some limits. Courts have determined that notice is considered “prompt” for purposes of establishing a valid claim when it is provided “with reasonable dispatch and within a reasonable time in view of all of the facts and circumstances of the particular case.”[1]

What does that mean for the homeowner? It means, thankfully, that a claim is not late just because the insurance company says it is late. For example, In Restoration Construction, LLC v. Safepoint Insurance Company, an insured suffered a water leak under their kitchen sink and quickly retained a water and mold remediation company. The remediation company began their work under an Assignment of Benefits the very same day. However, the insureds waited five days later to report the loss to the insurance company.

The trial court found that waiting the five days was not “prompt” notice, but on appeal, the Fourth DCA reversed.

When this issue comes before the court, it follows a two-prong analysis.  The first question is whether the notice is untimely. The second question is whether the untimely notice caused prejudice to the insurance company. These questions are typically best suited for a jury to decide.

Here are some lessons from this case which should be followed as much as possible after a loss:

1.      Provide notice as soon as practical. This may pre-empt any argument about the notice not being timely.

2.      Document the loss with video and photographs.

3.      Keep the actual evidence of damaged pieces of property.

4.      Make your8io0p repairmen and eyewitnesses to the repair and loss available to explain what they saw and did.

Most importantly, do not take a denial of your claim or an allegation of late notice as being the final word.

[1]  Restoration Construction v. Safepoint Ins. Co., No. 4D19-3790 (Fla. 4th DCA Dec. 9, 2020).