States differ regarding the time frame required for a first-party property insurance carrier to pay undisputed amounts on a claim. In Florida, for a residential first-party property insurance claim, the carrier is required to pay undisputed amounts within 90 days after receipt of notice of the claim, if these three things have occurred:1
- The insurer receives notice of the loss;
- The insurer determines the amount of partial or full benefits; and
- The insurer agrees to coverage.
If these three elements are met and the insurer does not pay the undisputed amount of benefits owed within 90 days of receipt of the claim, then the insurer may be subject to civil action under Fla. Stat. Ann. §624.155, referred to as the Civil Remedy Statute.
The exceptions are:
[U]nless payment of the undisputed benefits is prevented by an act of God, prevented by the impossibility of performance, or due to actions by the insured or claimant that constitute fraud, lack of cooperation, or intentional misrepresentation regarding the claim for which benefits are owed.2
Please note that the above is not applicable to federal flood claims.
1 Fla. Stat. Ann. § 626.9541(1)(i)(4).