Fifteen months after the superstorm smashed its way through the area, homeowners are still waiting for their insurers.
While Superstorm Sandy may no longer be making the top headlines anymore it doesn’t mean that the Connecticut insurance industry has finished up with all of the claims and payouts that were wrapped into this horrendous natural disaster that ripped across the east coast of the country.
Some homeowners insurance customers are still waiting to receive the payouts for their claims.
The problem is that time is starting to run out according to Connecticut insurance law, and payouts cases will soon need to be taken to court very soon if policyholders are going to be able to advance any further. If court cases are necessary, the amount of time in which they can now occur is running very thin. Despite the fact that state law gives consumers six years to be able to file lawsuits regarding contracts that have allegedly been broken, this is different for homeowners insurance disputes.
Connecticut insurance law gives a shorter limitation period in which to resolve homeowners claims disputes.
The shorter length of time afforded to policyholders for taking action is because the industry practice in the state is to work a time limitation for lawsuits into the standard homeowners insurance policy. The step of actually hiring an attorney and going to court is considered to be a last resort. The reason is that after having gone through all of the battles of trying to get the insurer to pay on their own, people are tired, financially strapped, and sick of fighting.
Unfortunately, waiting until the last minute can mean that many homeowners will unknowingly allow the deadline for taking legal action to pass. Until 2009, policyholders had a year to file a lawsuit against their insurer following a disaster. However, after that time, it was extended to 18 months. At the same time, it is common for homeowners not to realize that this deadline exists, at all. Many assume that they have the same 6 years that would be applicable for other contracts. The Connecticut insurance industry is, therefore, reminding policyholders to carefully review their policies so that they can make the right decisions for them, within the allowable time frames.