Late Notice

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As the effects vary from state to state, it is important to be aware of what can happen if there is a delay in providing a proof of loss or notice to a carrier in an insurance claim. Some states are more lenient and follow the notice-prejudice rule.1 “The notice-prejudice rule requires that the insurance company can assert late notice as a defense to overage only if the late notice has caused actual prejudice to the insurer.”2 Some states, on the other hand, are much stricter on complying with any deadlines for notice or proof of loss. What can happen in Arkansas if a proof of loss is late?…

Continue Reading Late Proof of Loss in Arkansas

What can happen if your proof of loss is late or delayed? Can your claim be denied because of a technicality such as this? Different states have different stances on this and in Wisconsin two statues govern this. Wisconsin Statute §§ 631.81 and 632.26 govern notice provisions in Wisconsin insurance policies and set out the rights and duties of the insured and the insurer.…

Continue Reading Is a Late Proof of Loss Fatal to A Claim in Wisconsin?

Insurance companies always seem to be at the ready with quite a few defenses up their sleeves, including – the technical defense of late notice. The traditional notice rule did not require the insurance company to show there was prejudice, it was simply enough for them to show the notice was untimely. Thankfully, many states now require the insurance company to show that the late notice was actually prejudicial to the investigation of the claim.…

Continue Reading Late Notice in Mississippi

Is it advisable to make a claim against the other person’s insurance carrier rather than your own insurance company? Maybe. But there is one big warning—you have a duty to notify your own carrier as soon as the loss happens. If you fail to promptly notify your insurance company of the loss, you may jeopardize your right to collect under your own policy. Notifying your own insurance carrier as soon as you have a loss is the safest way to protect yourself—even if you eventually collect everything from the responsible party’s insurance company.
Continue Reading My Property Damage Was Caused By a Third Party—Should I Wait to Notify My Own Carrier of the Loss Until I Collect From the Other Party’s Insurance?

Late notice of loss lead to denials in Florida at a very high rate. Insurers claim that they are prejudiced and that a presumption of prejudice arises from late notice. A federal trial court has questioned older legal authority about whether a presumption exists and whether the insurer bears the burden to prove prejudice based on policy language.1…
Continue Reading Is Your Denial Based on Late Notice of Loss—Who Has To Prove Prejudice?

Many insurance companies adjusting hail damage claims have a checklist of items that each adjuster must answer before payment of a claim. One of the items at the top of the list is whether there have been any prior hailstorms at the loss location. From a policyholder’s perspective, most do not go onto a roof nor call a roofer unless a leak occurs or there is obvious damage.
Continue Reading Hail Damage?—Not From This Hailstorm

With cold temperatures gripping my home State of New Jersey, my mind (and research) brings me to warmer locations. In a recent case,1 a federal court in Georgia held that an insured’s 11-month delay in filing a claim after a loss was not justified and provided the insurer with a reasonable ground to deny the claim.
Continue Reading Is Eleven Months Too Long a Delay in Filing a Claim with an Insurer After a Loss?

Late notice of damage to roofs is a common issue. Most people do not report damage from a windstorm to a roof unless it leaks. Do insurers expect that after every windstorm that their customers report a potential loss to them for inspection? Do insurers expect all of their policyholders to climb up on their roofs to look for damage?
Continue Reading How Late Can Late Notice of Loss Be of Roof Damage in South Carolina?

The defense of late notice has increasingly been used as a technical defense to preclude coverage for covered losses caused by covered perils. While some states have issued bulletins (targeting these strategies,1 often the determination of whether coverage will be afforded will depend upon whether a particular state requires that an insurance company demonstrate that the untimely notice caused prejudice in the investigation of the claim. While it would seem the denial of coverage due to an action that has no material effect on the insurer would further the purpose of having insurance, several states still apply a traditional notice rule that does not require a showing of prejudice.2…
Continue Reading Montana Requires Insurance Company to Demonstrate Prejudice When Denying a Claim for Late Notice

With the closure of the statute of limitations for Hurricane Irma related claims, we are faced more and more with claim denials based, in part, on “prompt notice” and/or “late notice” language from the insurance carrier. But was the claim actually reported late? Well, that depends on the reporting requirements as outlined in the insurance policy.
Continue Reading Was the Insurance Claim Really Late Reported?