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Why You Should Review Your Property Policies, Regularly
If you miss a property insurance claim deadline, it could potentially cost you hundreds, up to tens of thousands of dollars or more to complete repairs! Why? Missing a policy deadline could lead to a full, or partial claim denial.
I see a lot of policies as a licensed public insurance adjuster. I wrote this article to help you, as a policyholder, to learn that there are many different categories of policy deadlines and time limits, as well as triggers. The type of property policy you have can also affect these deadlines, such as Commercial, Homeowners, or Townhome Association/HOA policies.
It’s a good idea to review your full policy at every renewal period, and at the beginning of any potential or filed claim. Most insurance companies suggest that policyholders review and assess their property coverages at least yearly as well!
For this article, we will to focus on common Homeowners Replacement Cost Value policy provisions with limits of 180 days, for Coverage A - Dwelling.
Three Common "180-Day" Policy Deadlines:
1️⃣ Reporting period:
Increasingly common, this type of 180-day provision that I see typically requires you to report hail and/or wind losses, specifically, to your insurance company within 180 days from the Date of Loss. If your policy contains this provision, and you don’t report your hail or wind loss within the time specified, you may not be eligible for coverage if you make a claim.
Now, if you miss a policy deadline such as this, there may be exceptions in certain cases. If your claim is denied in a situation like this, we may be able to help.
In addition to reviewing your insurance coverages on a regular basis, it's a good idea to inspect your home or property at least once or twice yearly - Fall and Spring are good options - as well as after any severe weather events. Being aware of the condition of your home can help you spot repairs that you might want to make, whether any potential repairs involve a property claim or not.
2️⃣ Recoverable depreciation deadline:
There are many different recoverable depreciation deadlines in property policies. They vary by state, insurance company, policy, type of policy, coverage form, and more.
For time limits to complete repairs to your home to claim any applicable recoverable depreciation, 180 days in some form is the shortest deadline I've seen. The maximum time limits can go all the way up to your state's statutory deadline... There are even rare cases I've seen where the recoverable depreciation deadline can extend past statutory deadlines, specifically in the case of the last three provisions in the list below!
If you have a 180-day recoverable depreciation deadline in your policy, you might see one of these variations:
180 days from the Date of Loss
180 days from the first Actual Cash Value payment
180 days from the last Actual Cash Value payment
180 days from the last Coverage A - Dwelling payment
180 days from the last claim payment (general, coverage form not specified)
So many exciting options, yes?
As with reporting deadlines, there may be exceptions to not being able to comply with recoverable depreciation deadlines. The good news is, we can help with claim extensions, too!
However, once your claim passes it's statutory deadline, we cannot help. This type of deadline varies by state. If you have an active property claim, it's important to review your policy early in the claim.
3️⃣ Notification of intent:
This type of provision typically states that you must notify your insurance company of your intent to repair or replace the property within 180 days from the Date of Loss, in order to be eligible to claim the recoverable deprecation after repairs are completed.
This type of provision can be misinterpreted and misapplied. I have successfully overturned wrongful claim denials for policyholder clients when this provision was misapplied by their insurance company. If your claim has been denied and policy language similar to this was cited as the basis of the exclusion, you may want to get a second opinion!
Not sure what any of this means? It's ok! Not everyone enjoys property insurance like I do. Parker Public Adjusting is here to help. As licensed public insurance adjusters, we work on behalf of policyholders to manage and reconcile property insurance claims. Contact us today for a no-obligation insurance claim or policy review:
Be well,
