You would think there would be an easier answer to this question. The more complex the claim is–or the longer it takes for repairs or replacement to occur–the longer one can expect the claim to last. However, there should be consistent forward movement to full repair and payment.
Waiting for an insurance claim to pay out can be incredibly frustrating, causing unnecessary stress and anxiety. The delay in receiving funds can cause significant financial strain, making it difficult to cover necessary expenses and leaving you feeling helpless and overwhelmed.
At Wallace Law, we understand this and are here to help you. We fight the insurance companies for you, leveraging our experience to help ensure that your claims are paid on time and per applicable laws. Let our experienced attorneys fight for your rights and get you the peace of mind you deserve.
What Is an Insurance Claim?
An insurance claim is a request a policyholder submits to their insurance company to seek compensation for damage or loss covered under their policy. Common damages include accidents like fires, floods, tornadoes, and more. An insurance dispute attorney can help fight bad faith or unfair claims in health insurance, life insurance, property insurance, renters insurance, and long-term care insurance, each of which comes with their own set of complexities.
Who Approves Insurance Claims?
Once you file a claim, your insurance company will assign it to an adjuster. The adjuster’s responsibility is to investigate your claim, collect evidence, and decide whether the damage is covered. Although insurance adjusters sometimes get a bad rap, they are legally bound to perform their job honestly and efficiently.
It is important to collect your own evidence when documenting your loss. Taking photographs, keeping records and receipts for replacement items and medical visits, and gathering contact information from eyewitnesses can help you validate your claim.
How Do Insurance Companies Pay Out Claims?
In general, insurance claim payouts are influenced by the amount and extent of your damages, the limits of your policy, and the type of damage (and whether or not it is covered). If all of your damages are covered, an insurance company will generally pay you what they determine to be the cost of repairing or replacing those damages. However, this is usually subject to a “limit” defined in your policy, which refers to the highest amount the insurance company will pay for a covered claim. Lastly, certain types of damages may be considered “exclusions,” meaning they are not covered, which may lead you to receive a lower payout than expected.
It is critical to read your policy carefully as it will detail information about limits and coverage that is specific to you. If you have a complex claim, it may take longer to be approved.
How Long Does It Take For an Insurance Claim To Be Approved?
It is not unusual for the claims process to take longer than expected. While Wisconsin laws mandate insurers to “promptly pay every insurance claim” within 30 days, some factors may cause your claim to take longer:
- The complexity of the claim (smaller and simpler claims are generally processed quickly)
- Amount of evidence/documentation required (additional documentation or evidence of damages may be required for some claims)
- Representation by an insurance dispute lawyer (having representation helps ensure that your interests are protected)
If a claim is disputed and goes to appeal, there may be an even longer waiting period to receive your payout.
Legal Practice Areas
Insurance Dispute Lawyer
Bad Faith Insurance Attorney
Commercial Property Insurance Dispute Lawyer
Denied Renters Insurance Claims Lawyer
Health Insurance Dispute Lawyer
Life Insurance Dispute Lawyer
Long-Term Care Insurance Denials Lawyer
Property Insurance Dispute Lawyer
Travel Insurance Dispute Lawyer
Wisconsin Insurance Dispute Lawyer
Is There an Insurance Claim Time Limit?
The statute of limitations for filing an insurance dispute lawsuit in Wisconsin is usually one year after the loss, but some policies may allow for an extension of up to two years. It is crucial to confirm the deadline with an insurance dispute lawyer as many people come to an attorney too late and can no longer sue a bad faith insurer.
How Long Does a Life Insurance Claim Take?
Life insurance claims should ideally be responded to within 10 days and approved or denied within 30 days; however, some factors can delay a life insurance claim (which should still be communicated to you in writing). Reasons for delays may include:
- Lapsed premiums (i.e. when the life insurance policy premium has not been paid)
- Failure to disclose information (if new information reveals pre-existing conditions or lifestyle factors that might have affected initial coverage)
- Cause of death (for example, many life insurance policies will not cover death by suicide, so if suicide is suspected, there may be an investigation)
- Contestability period: (you may be denied the claim made during a contestability period)
How Long Does a Homeowners Insurance Claim Take?
The average length of time a homeowners insurance claim takes in Wisconsin can vary, but state law mandates a response between 10 to 30 days. Inspections and/or inability or insufficient access to the property may affect the length of time it takes an insurer to determine the validity of a claim.
How Long Does a Renters Insurance Claim Take?
Renters insurance claims are subject to the 30-day rule as well. If you have filed a renters insurance claim and it is still being processed, there may be valid reasons for the delay, such as:
- Missed premium payments
- Delayed claim filing
- Exclusions to your policy
- Lack of evidence
Contact a renters insurance attorney if you feel your insurer is deliberately stalling your claim or engaging in other unethical insurance practices.
Why Is My Insurance Claim Taking So Long?
There are numerous reasons why an insurance claim can take a long time. Some of the reasons might be because of improper or delayed filing. In other cases, there may be processing errors or inefficiencies. However, if you feel your insurance company is stalling or improperly handling your claim to give you a lowball offer or deny you coverage, they may be at fault for committing bad faith insurance practices. If you are suspicious of your insurance company’s actions, it might be time to contact an attorney.
What To Do If Insurance Company Is Stalling?
Stalling a claim is a tactic some insurance companies may use to pay you less or not at all. If you feel this is happening, these are the immediate steps you can take:
- Contact your insurer to express your concern and request an update. Do this in writing and/or record any oral communication.
- Stay in touch with the insurer and respond to their requests promptly
- File your claim on time in the required format
- Collect and document all correspondence you have with the insurer
If these actions do not resolve the situation, you may consider filing a formal complaint with the Office of the Commissioner of Insurance with the help of an experienced legal practitioner. Having legal representation can help you navigate the claims process, potentially speeding up the timeline and providing legal recourse if you wish to file a bad faith suit against your insurer.
Have Insurance Claim Questions? Contact an Experienced Insurance Dispute Attorney Today
When it comes to seeking an insurance claim, it’s essential to take proactive steps. Providing all required documentation on time, maintaining regular correspondence, and following up on delays can all help.
However, despite our best efforts, some insurance companies do not respond or stall genuine claims to save their bottom line. In such cases, our team at Wallace Law is ready to take up your fight for you. We put our knowledge of Wisconsin insurance law to use to fight your insurer so that your claim is handled timely and efficiently. Contact us for a consultation and learn how we can help.
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