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How fast do insurance companies need to process claims?

On Behalf of | Apr 26, 2023 | Insurance Law and Litigation

When unexpected events occur in Florida, it can really disrupt people’s lives. Some of these events can leave people’s homes with extensive damage or people may suffer significant illnesses or injuries. These can be costly for people as well and it is why they pay their insurance premiums. They want to make sure that they are not stuck paying for the expenses out of pocket.

When people file insurance claims, they usually want a quick response as their lives may be uprooted until repairs can be made to their property. However, sometimes the response time is much slower than people would like it to be.

Time requirements for processing insurance claims

There are laws in Florida that set time requirements for insurance companies’ response to claims. Insurance companies must acknowledge receipt of an insurance claim within 14 days of receipt of the claim. There are only two exceptions to that rule. One is if they make payment prior to the 14 days or there are factors beyond the control of the insurance company that prevent a reasonable response to the claim.

Next, insurance companies must begin their investigation into the claim within 14 days of receiving the proof-of-loss statements. Any adjuster assigned to the claim must contact the policy holder and give them their name and license number.

Overall, insurance companies have 90 days from the time the policyholder makes the claim to either pay the entire claim, a portion of the claim or deny the claim. The insurance company also needs to provide a written explanation for why a claim is paid or denied and must cite specific clauses in the policy and applicable law when giving their decision.

There are many times when insurance companies in Florida do not follow these time requirements. Policyholders may be left wondering what is happening with their claim and whether they will ever receive their money. Experienced attorneys understand how to put pressure on insurance companies and ensure they are following the law. Consulting with one may be beneficial for people waiting for responses to claims.

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