Many Coloradans suffered damages due to the horrific hail storm on June 6, 2012. One person said it looked like Christmas in June because the golf ball size hail was so big and thick that it looked like snow. Numerous homes and buildings were bombarded by hail and severely damaged. Some people filed claims with their insurance company and were fully paid for their damages. Others were not so fortunate, so now is the time to act. The statute of limitation for many claims is June 6, 2014 – meaning that if you are going to file suit against your insurance company, you must do so by that date or you may forever lose your chance to get the money you are due.

There are several causes of action that may be at issue – breach of contract, unreasonable delay to pay, agent negligence, and bad faith, among others. Each case is different.

Breach of contract – Have you fully complied with the terms of your policy and paid your premiums? Did you file a claim with your insurance company? Did the insurance company follow the terms of the policy, investigate and pay your claim? If not, your insurance company may be in breach of contract.

Unreasonable delay – Hail is very damaging to roofs, to say the least. Often it is just the beginning of problems. It leads to leaking ceilings, buckets catching water in the middle of your floor, mold issues, etc. Before you know it, what was a $50,000 problem easily becomes a $400,000 problem because if the roof is not timely fixed the additional damage it causes comes fast and furious. Believe me, I’ve been through this myself. It is extremely important that the insurance company act in a timely manner so that policy holders have the money they need to repair or replace their roofs.

Agent negligence – Sometimes an insurance agent fails to obtain the correct coverage, fails to renew a policy, etc. Did you request an actual cash value policy or a replacement cash value policy? When a claim is filed, the monetary difference in the two can be striking. You may have a course of action to pursue against your agent.

Bad faith – The relationship between the insurance company and the insured is special, and insurance companies are required to act in good faith and be reasonable. But sometimes they string you along and hope you get frustrated and go away. In fact, they’re counting on it. Sometimes insurance companies intentionally deny a claim, fail to investigate a claim and/or fail to pay a claim. Your redress is to sue them and make them pay.