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How Long Does it Take for an Insurance Company to Payout a Property Claim in Florida?

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How Long Does it Take for an Insurance Company to Payout a Property Claim in Florida?

How Long Does it Take for an Insurance Company to Payout a Property Claim in Florida?

Photocredit: Saffwein

If you are making a property claim in Florida, it is important to know roughly how long it takes for the insurance company to pay out after a disaster. With that being said, you have to take into consideration that every claim is completely unique so there are only ballpark answers to a question like this.

Recently, hurricane Erma caused an estimated damage of over $50 billion. There are still people rebuilding after this hurricane across the state.  In addition, there are a number of insurance companies that are still finding it difficult to keep up with the claims that were started during this time. A number of insurance companies even begun relying on third-party admin groups.

The problem with these third-party groups is that they were often untrained laborers and adjusters that went through claim investigations. This meant they got through the claims much more slowly than some of these skilled adjusters available. With over 311,500 claims opened throughout Irma, there’s still over 82,000 claims still open without any type of payment issued yet. 

Many former residents ask about the total amount of time that it takes for insurance carrier to payout a property claim in Florida. In extreme cases like Irma, there is no definitive answer, but there are certainly some important dates involved with any insurance claim:

Communication on a claim in 14 days:

An insurance carrier needs to establish communication after a claim within 14 days. This means that if you make a claim, any insurance carrier will have to send out some type of communication within 14 days of your claim submission. If the insurance carrier manages to pay out the claim within 14 days, there’s no need for this communication. 

An insurance company can also absolve themselves of this responsibility if the customer fails to provide the necessary communication items on their claim form or if the claim is filled out incorrectly. Full evidence also needs to be gathered by the policyholder including the damage to property, various receipts and other factors that can supplement the claim. Claim investigations have to take place shortly after the communication period takes place between the customer and the insured.

Decision on claim in 90 days:

In most cases, insurance carriers will issue a decision on an insurance claim within 90 days. The notice for an insurance claim is often denied or paid within this amount of time or a failure to pay suit can be opened.  If your insurance claim has gone over 90 days without a decision, you should consult with an experienced insurance attorney.

Receiving payment:

When an agreement is met between the insurance company and the policyholder, payment in accordance with the terms is usually delivered within 20 days of the settlement. If payment is not delivered after the settlement has been reached, there is an interest rate of up to 12% per year from the date of agreement that can be added on to the payment for the insured.

If an agreement has been made but you still have not received any type of payment on your insurance policy, it could be time to start working with an insurance lawyer. Performing a comprehensive investigation on your policy can make sure that your insurance company knows about your case. Having representative on your site can also make sure that your claim can be handled without further unreasonable delays. 

If an insurance company has to delay payments due to an excess of claims, insurance carriers now need to provide information about their altered decisions. Complying with new policy conditions and making sure that your rights are being upheld can be an important step to making sure that you can get a quick payment through insurance when it’s required. If you are stuck facing slow turnaround times with your payment from an insurance company, it is wise for you to move forward using an insurance lawyer. Working with your insurance carrier and making sure that they can issue payment quickly will help you to recover, especially when you have had difficulty filing a claim. Contact us today for a free consultation regarding your property claim!

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