Estimated reading time: 5 minutes
When property damage occurs, most policyholders focus on the visible loss: broken roofs, soaked drywall, smoke damage, or business interruption. What often receives far less attention—until it’s too late—are the deadlines embedded in the insurance policy itself.
Insurance policies are contracts. They impose strict procedural requirements on the insured, and failure to comply can jeopardize some or all of the claim—regardless of how legitimate the damage may be.
Below are four insurance claim deadlines that are most frequently missed, why they matter, and how policyholders can protect themselves.
1. Notice of Loss Requirements
“Prompt,” “Immediate,” or “As Soon As Practicable” Isn’t as Flexible as It Sounds
Most property insurance policies require the insured to provide prompt notice of loss. While that language may seem vague, courts often interpret it strictly—especially when the insurer alleges prejudice caused by delay.
Common Mistakes
- Waiting until repairs are complete to notify the insurer
- Assuming a contractor or agent “already reported it”
- Delaying notice because damage appears minor
- Discovering damage months later and failing to explain why
Why It Matters
Late notice can:
- Limit the insurer’s ability to investigate causation
- Lead to partial denials or coverage disputes
- Shift the burden onto the insured to prove the carrier was not prejudiced
In some jurisdictions, late notice alone—without proof of fraud—can be enough to reduce or bar coverage.
Best Practice
Notify the insurer as soon as damage is discovered, even if:
- The scope is unclear
- Repairs have not started
- You are unsure whether the loss will exceed your deductible
Documentation explaining when and how the damage was discovered is often just as important as the notice itself.
2. Proof of Loss Submissions
The Deadline That Silently Expires Claims
A Proof of Loss (POL) is a sworn statement submitted by the insured that outlines the amount being claimed under the policy. Many policies require it:
- Within 60 days, 90 days, or another fixed period
- Only after the insurer formally requests it
Common Mistakes
- Assuming estimates or invoices substitute for a Proof of Loss
- Missing the deadline while negotiating scope or pricing
- Submitting an incomplete or unsupported Proof of Loss
- Failing to request an extension in writing
Why It Matters
Failure to timely submit a Proof of Loss may:
- Void certain coverage benefits
- Give the insurer contractual defenses
- Freeze negotiation leverage during appraisal or litigation
Even when insurers continue adjusting the claim, they may later raise the missed deadline as a defense.
Best Practice
- Track Proof of Loss deadlines separately from adjustment discussions
- Confirm whether the insurer has formally requested a Proof of Loss
- Submit the Proof of Loss timely—even if the claim amount is disputed
- Request written extensions when necessary
3. Repair and Replacement Deadlines
Recoverable Depreciation Is Not Open-Ended
Replacement Cost policies often require repairs or replacement to be completed within a specific time frame—commonly 180 days, 365 days, or two years—to recover withheld depreciation.
Common Mistakes
- Delays caused by permitting or contractor availability
- Supply chain disruptions
- Ongoing disputes over scope or pricing
- Failure to request deadline extensions
Why It Matters
If repairs are not completed within the policy’s timeframe:
- Recoverable depreciation may be forfeited
- Large portions of the claim may remain unpaid
- The insurer may close the claim permanently
Even substantial progress on repairs may not be enough if the policy requires completion, not commencement.
Best Practice
- Identify replacement deadlines early in the claim
- Maintain documentation showing good-faith repair efforts
- Request extensions in writing—before deadlines expire
- Avoid assuming carrier flexibility without confirmation
4. Suit Limitation Clauses
The Deadline That Ends All Leverage
Many property insurance policies contain a Suit Limitation Clause, requiring legal action to be filed within a specific period—often one or two years from the date of loss, not from claim denial.
Common Mistakes
- Believing the statute of limitations applies instead
- Assuming ongoing negotiations toll the deadline
- Waiting for a final denial letter
- Confusing appraisal deadlines with suit deadlines
Why It Matters
Once the suit limitation period expires:
- The claim may be permanently barred
- Courts may dismiss the case outright
- Settlement leverage disappears entirely
Even strong claims with clear underpayment can be lost due to a missed suit deadline.
Best Practice
- Calendar suit limitation dates immediately after loss
- Monitor tolling agreements closely
- Understand whether appraisal pauses—or does not pause—the clock
- Seek legal guidance well before the deadline approaches
Why These Deadlines Are Missed So Often
Insurance policies are dense, technical documents written for risk transfer—not consumer clarity. Policyholders are often:
- Dealing with emotional stress and displacement
- Relying on third parties without clear authority
- Unaware that adjustment discussions do not stop contractual clocks
Unfortunately, insurers are not required to proactively remind policyholders of these deadlines.
Final Thoughts for Policyholders
Insurance claims are not just about damage—they are about process. Deadlines embedded in the policy can be just as critical as documenting the loss itself.
Understanding and tracking:
- Notice requirements
- Proof of Loss deadlines
- Repair and replacement time limits
- Suit limitation clauses
can make the difference between a fully paid claim and a permanently compromised one.
Disclaimer
This article is for general informational purposes only. Employees and representatives of Green Public Insurance Adjusting are not attorneys and do not provide legal advice. Policyholders should consult qualified legal counsel regarding specific coverage disputes, contractual deadlines, or litigation decisions.
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