Did you recently file a homeowners insurance claim or another type of property damage claim? Are you waiting to hear back from the insurance company? If it has been a frustratingly long time, you are certainly not the first person to find yourself in this difficult situation. You may be wondering: How long can my insurance company delay a claim? The short answer is “it depends”—though, in most states, including Louisiana, an initial acceptance or denial of the claim should come within 30 days of the final proof of loss as long as no exceptions apply. At Insurance Claim HQ, we help clients assert and protect their rights. Here, our New Orleans homeowners insurance claims lawyers explain the key things to know about the insurance company’s ability to delay your claim.
Insurance Company Delaying Payment Claim? Know the Next Steps
There are few things more frustrating than waiting on an answer from a property insurance company. Understandably, you are ready to move forward with your life and get repairs made. Yet, sadly, insurance companies can sometimes make the claims process very challenging for homeowners and business owners. Here are three steps to take if you believe that your insurer is unreasonably delaying payment in New Orleans or elsewhere in the Gulf Coast region:
- Step #1: Get Details On the Reason for the Delay: First and foremost, you should try to find out exactly what is going on with your claim. Why is it being delayed? In some cases, there could simply be a good-faith misunderstanding. The insurance company may need you to send over some type of documents that are relatively straightforward and easy to provide. Of course, that is certainly not always the reason for delays. Still, you need to know why a delay is happening to effectively address it. Be sure to document all communications, including emails and phone calls. If the insurer’s reasoning seems vague or unreasonable, that could be a sign of bad faith settlement practices.
- Step #2: Carefully Gather and Organize Supporting Documentation: Organization is one of the keys to homeowners insurance claims. To strengthen your claim and to prevent further delays, you should gather and organize all relevant documentation. Some examples of relevant documentation include your insurance policy, proof of property damage, repair estimates, receipts, photos, and any correspondence with the insurer. Here is the simple thing to keep in mind: A well-documented claim can help to ensure that the insurer cannot use missing information as an excuse for further delay. If additional documents are requested, you can provide them promptly (assuming the request is legitimate and reasonable). If the request is overly burdensome, that could be bad faith.
- Step #3: Consult With a Property Insurance Attorney: A delay by an insurance company can be stressful, frustrating, and confusing. You do not have to work through this process alone. If you believe that your homeowner’s insurance claim or commercial property insurance claim has been delayed for an unreasonable amount of time, you should consult with a top-rated attorney. A New Orleans property insurance lawyer can assess whether the insurance company is acting in bad faith and can help you develop a plan of action.
How Long Can an Insurance Company Delay a Claim?
How long can an insurance company take to process a claim for property damage? The answer depends on a number of different case-specific factors, including the state the claim is being brought in. Indeed, property insurance policies are largely regulated by state law. Under Louisiana law (RS 22:1892), there is a strict deadline for an insurer to handle a claim. After a property owner files a claim, the insurer has 14 days to acknowledge receipt and begin an investigation. After receiving satisfactory proof of loss, the insurance company must pay the claim within 30 days.
However, there are some exceptions to the 30-day deadline. In Louisiana, an insurance company can request an extension under certain circumstances—but it must provide a legitimate reason for the delay and act in good faith. As noted above, Louisiana law generally requires insurers to pay a claim within 30 days after receiving satisfactory proof of loss. With that being, if additional investigation is necessary—such as in cases involving an especially complex assessment of damage or a dispute over coverage—the insurer may be granted more time.
Disputes Can Arise Over Whether or Not a Delay is Justified
Further, it is important to emphasize that the 30-day deadline does not start until the insurance company receives satisfactory proof of loss. If it has not yet received the proper proof of loss, then technically, it cannot be liable for an unreasonable delay in violation of RS 22:1892. Of course, in some cases, disputes arise over whether or not an insurance company actually gets sufficient proof of loss from the policyholder. An attorney can help you navigate this type of dispute.
To justify an extension, the insurer must notify the policyholder in writing, explaining the reason for the delay and providing an estimated timeframe for resolution. Delays sometimes happen for valid reasons—but the burden is on insurance carriers to explain exactly why there is a delay and how/when it is likely to be resolved. Simply delaying payment without proper justification can be considered bad faith.
An Unreasonable Delay May Be a Bad-Faith Settlement Practice
In Louisiana and in other jurisdictions, insurers are legally required to handle property damage claims fairly and promptly. The failure to do so could be a bad faith settlement practice. If an insurance company unreasonably delays payment without a valid justification, it may be engaging in bad faith settlement practices under R.S. 22:1892 and R.S. 22:1973. Other states in the Gulf Coast region have similar laws in place. Bad faith occurs when an insurer fails to pay a valid claim within a reasonable period of time, ignores communication, and/or intentionally creates unfair and improper obstacles to avoid paying benefits. Through a bad faith claim, policyholders may be entitled to compensation for the full value of their initial claim as well as additional bad faith damages.
We Help Homeowners Challenge Insurance Company Delays
Insurance delay claims can be deeply frustrating. You do not have to sit back and accept a delay of your benefits without a fight. At Insurance Claim HQ, we have what it takes to move cases forward and to get claims paid. With a proven record of case results, our New Orleans homeowners insurance lawyers are always prepared to go the extra mile to help clients get the best possible outcome. You do not have to live dealing with an unfair delay from the insurance company.
Contact Our New Orleans Homeowners Insurance Attorney Today
At Insurance Claim HQ, our New Orleans homeowner insurance lawyers fight tirelessly to help clients secure the absolute maximum property damage benefits. You are not alone. If your homeowners insurance claim has been delayed by the insurance company, please do not hesitate to contact us right away for a free, no-obligation case assessment. We represent homeowners in New Orleans and throughout the wider region in the Gulf Coast region.
