Homeowners insurance is a mandatory expense for many Florida property owners. Mortgage companies typically require proof of insurance and adjust monthly payments to include escrow contributions to cover policy premiums.
Even those who may not have a mortgage attached to a property anymore may still carry several types of homeowners insurance. They need protection against storm damage, premises liability if a visitor gets hurt and the possibility of criminal activity.
Insurance can help pay for injuries and property damage losses. It can also cover the cost of repairing the property. Homeowners may not have cash on hand to cover those expenses out of pocket. They may need a prompt settlement. How quickly can homeowners receive compensation after filing a claim?
State law establishes key deadlines
Insurance companies may want to delay claims to spread out losses after major storms. In some cases, delays can lead to policyholders failing to follow up on claims as well, helping the company avoid paying on potentially valid claims for coverage. State law therefore imposes clear timelines for the claims process.
Typically, homeowners can expect payment in full for valid claims within 60 days after submitting the claim. Delays past that 60-day point may lead to the need for the insurance provider to pay interest on the claim amount.
There are a handful of other important deadlines that also apply. The insurance company typically needs to acknowledge the claim within seven days of the policyholder making it. The company should provide necessary proof of loss forms.
After the policyholder submits those papers, the company has 30 days to communicate about whether it intends to pay the claim in full, offer partial coverage or deny the claim. In rare cases, the company may provide written notice of an ongoing claim investigation. Policyholders should also receive an estimate of damage amounts within seven days of the insurance company compiling that list.
The failure to follow state rules when responding to claims can potentially lead to bad faith insurance litigation. Homeowners facing complicated claims, unreasonable delays or unfair denials may need help holding an insurance company accountable. Learning about the rules for claims can help people recognize when an insurance company may have acted in bad faith.