Statute of Limitations on Insurance Claims in Wisconsin

Wisconsin policyholders whose insurance companies do not treat them fairly in the claims process may have the right to file a lawsuit. However, they do not have an unlimited amount of time to do so. Any legal action they take is subject to the statute of limitations on insurance claims in Wisconsin. Knowing this deadline and how it affects your recovery is critical. Wallace Law explains what you need to know.

What Is the Statute of Limitations on Insurance Claims in Wisconsin?

A statute of limitations is a deadline to file a lawsuit. It exists in various civil claims, such as personal injury and breach of contract. Generally

, the clock starts to run on the day of the incident that gives rise to the legal claim. In other words, when someone does wrong, and it allows another party to take legal action, the date of the wrongful act is usually when the countdown begins.

In Wisconsin, the statute of limitations on insurance claims is one year from the date of loss. If an individual files outside of this one-year deadline, the court will likely dismiss your lawsuit. Even if you suffered tremendous loss which is otherwise covered, your claim will be barred.

Wisconsin’s One-Year Limitation for Property Insurance

Section 631.83 of the Wisconsin Statutes reads as follows:

Fire insurance. An action on a fire insurance policy must be commenced within 12 months after the inception of the loss. This rule also applies to riders or endorsements attached to a fire insurance policy covering loss or damage to property or to the use of or income from property from any cause, and to separate windstorm or hail insurance policies.

It should be noted that the Wisconsin Supreme Court treats “fire insurance” as a generic term referring to all property loss and damage. In addition to fire, therefore, the one-year statute of limitations applies to property insurance claims involving floods, lightning damage, and other disasters.

What About Other Types of Commercial Insurance Claims?

Property damage is not the only type of commercial insurance that is subject to a statute of limitations. You may have a claim, for instance, that is related to renters insurance (which itself covers a variety of losses, including because of theft and vandalism), travel insurance, long-term care insurance, and more. If long-term care is considered disability insurance under state law, then a lawsuit must be commenced within three years from the time that written proof of loss must be furnished.

Regardless of the type of insurance dispute you have, our experienced law firm is ready to fight to ensure you are treated fairly after a covered loss. However, in all cases, you need to remember that you only have as much time as what is allowed under the applicable statute of limitations.

What If the Insurance Company Acts in Bad Faith?

Unfortunately, having insurance does not always mean that an insurer will fairly treat its policyholders. Bad faith refers to a number of different unethical and sometimes illegal insurance practices. Your Wisconsin insurance provider may engage in such bad faith tactics as:

• Intentionally and unreasonably denying payment for a covered loss
• Making changes to the insurance policy without first notifying the policyholder
• Unnecessarily delaying the claims process
• Failure to communicate promptly with the policyholder
• Insufficient or delayed investigation of the claim
• Abusive investigation activities
• Asking for irrelevant and excessive documentation
• Unlawfully threatening the policyholder
• Committing fraud or fraudulently misrepresenting the terms of the policy or the law
• Lying to the policyholder
• Denying or underpaying a valid claim without a reasonable explanation
• Using inaccurate or outdated legal or factual arguments to deny or underpay a claim
• Refusing to make a reasonable settlement offer
• Unfairly and dishonestly blaming the policyholder for the damage or loss
• Baseless policy cancellations
• Otherwise failing to fulfill its obligations under the policy

Under Warmka v. Hartland Cicero Mutual Ins. Co., the limitations period for the intentional tort of bad faith is governed by § 893.57, which is two years for intentional torts (and not one year).

These and other practices are often against the law, and at the very least show a fundamental disrespect to the policyholder. Insurers often do these things to frustrate the policyholder and convince them to give up. Fortunately, we can help you fight back.

If you suffered a property loss and you are not being fairly treated by your insurance company, you need to remember that you only have up to one year after the loss to take action. We recommend that you do the following:

• Get a copy of your insurance policy and read it carefully, focusing on deadlines, the process for submitting a claim, and the dispute resolution terms
• Document as much about the property loss as you can through photographs, videos, receipts, estimates, communications with the insurer, and more
• Carefully fill out any appeals paperwork and submit it on time to the appropriate department or individual at your insurance company
• Do not cash any checks the insurance company sends you, since doing so can be construed as an acceptance of the insurance company’s offer
• Speak to a knowledgeable attorney about your property insurance dispute

Why You Want to Speak With a Wisconsin Insurance Dispute Attorney Quickly

One year may seem like a long amount of time, but the statute of limitations will approach more quickly than you might expect. Even though you have up to a year to file a lawsuit, it is strongly advised that you do not delay taking action. Evidence can be lost, memories can fade, and it can be much more difficult to locate reliable third party witnesses who can support your claim. The strongest lawsuits are filed long before the one-year deadline is reached.

When you retain Wallace Law to handle your insurance dispute, you get a trusted and zealous legal advocate who will not tolerate unethical insurance tactics. Our lawyers worked for insurance companies for over a decade, so we are well aware of the dishonest strategies that insurers use to cheat policyholders out of their claim payments.

Our insurance dispute lawyers have recovered millions of dollars to date on behalf of claimants whose insurance companies tried to unreasonably underpay or deny their claims. And while our successful past results are no guarantee of future outcomes, they speak to our commitment to serving clients with the professionalism and tenacity they deserve.

We’re excited to discuss our experience and how we can serve you. However, you should not delay taking action. Insurance claims can take a significant amount of time, and your claim could be time barred if you wait too long to file a lawsuit.

Contact Wallace Law for Help With Your Insurance Claim

Did you suffer property damage or loss, submit a claim, but your insurance company is not giving it the attention or treatment that it should? Has your insurer’s delays, unfair settlement offers, and bad faith behavior frustrated you? Are you unsure of what to do next?

Turn to Wallace Law. A Wisconsin insurance dispute lawyer from our firm understands the situation you are going through, and we know what it takes to present a compelling legal claim. If you have any questions or concerns about your insurance policy or a claim you submitted, don’t wait. Reach out to us today for a free case consultation.