Question of the Week
How quickly must a homeowners' insurer investigate and pay a claim?
Florida law requires an insurer to "act promptly" on claims, but does not specify a specific timetable for claim payment. If a policyholder makes a written request for a coverage determination after submitting a sworn proof of loss, an insurer has 30 days to make a coverage determination. The Homeowners' Bill of Rights, signed into law by Governor Crist on May 28, 2008, added a new deadline on insurers that have acknowledged an obligation to pay a portion of a claim.
Homeowners' insurers are now required to make partial payments on the undisputed portion of a claim within 90 days of when the insurer acknowledges coverage. Previously, some insurers elected to wait until the claim was finally resolved before making any payments. That approach is now considered an unfair claims practice.
For more information, please contact Robert Friedman.
