Suit Limitation Clauses in Insurance Policies: The Deadline That Quietly Ends Claims
January 2, 2026 No Comments
Suit limitation clauses in insurance policies impose strict contractual deadlines for filing lawsuits that are often much shorter than state statutes of limitations. Many policyholders and contractors mistakenly believe that ongoing claim negotiations, appraisal, partial payments, or the absence of a formal denial will pause or extend these deadlines. In reality, courts frequently enforce suit limitation provisions as written, and missing the deadline can permanently bar recovery—even when damage and underpayment are undisputed. Understanding and tracking these time limits from the date of loss is critical to preserving a policyholder’s ability to challenge claim decisions and protect their rights.
