How Delayed Claims Benefit Insurance Companies

The longer insurance companies hold on to your money, the more money they make in the financial markets.  They use tactics to delay claims on a regular basis.  The odds are stacked in the insurance companies favor that people with delayed claims will do nothing about it.

What has the legislature done about delayed claims?

Fortunately for home owners and business owners the Florida legislature enacted: 

Florida Statute 627.70131 Insurer’s duty to acknowledge communications regarding claims; investigation. Delayed Claims.

Florida statute  627.70131 The statute states in part:


(5)(a) Within  90 days after an insurer receives notice of an initial, reopened, or  supplemental property insurance claim from a policyholder, the insurer  shall pay or deny such claim or a portion of the claim unless the  failure to pay is caused by factors beyond the control of the insurer  which reasonably prevent such payment. Any payment of an initial or  supplemental claim or portion of such claim made 90 days after the  insurer receives notice of the claim, or made more than 15 days after  there are no longer factors beyond the control of the insurer which  reasonably prevented such payment, whichever is later, bears interest at  the rate set forth in s. 55.03.  Interest begins to accrue from the date the insurer receives notice of  the claim. The provisions of this subsection may not be waived, voided,  or nullified by the terms of the insurance policy. If there is a right  to prejudgment interest, the insured shall select whether to receive  prejudgment interest or interest under this subsection. Interest is  payable when the claim or portion of the claim is paid. Failure to  comply with this subsection constitutes a violation of this code.  However, failure to comply with this subsection does not form the sole  basis for a private cause of action.

What does this mean for delayed claims?

In a snap shot it means that the insurance company cannot delay claims past 90 days without a valid reason.

Can your claims be considerd delayed before 90 days?

Absolutely.  The statute allows up to 90 days to investigate insurance claims, but the insurance company cannot unreasonably delay a claim that should be paid.  They must not act in bad faith towards your claim.  If they fail to respond to communications within the first 14 days they may be in violation of Florida Statute 627.70131.

Lets be real about Delayed Claims...

Insurance companies are fully aware of when they are delaying claims, and you have a pretty good idea of when your claim is being delayed.  You should contact a professional attorney or public adjuster if you are unsure about your delayed claim.