Georgia Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Georgia, the policyholder must inform their insurance carrier of the loss (either directly or through their agent), and that they are making a claim. This means that the only requirement to initiate the process is that the insurance carrier is informed that there has been a loss, some details about the loss, and that the policyholder wants to make a claim.  

In many cases, an insurance company will call this communication a first notice of loss, or FNOL. In Georgia, insurance laws call this communication a “notification of claim.” 

Most insurance companies provide multiple ways to contact them after a loss to begin the claims process, these usually include: 

a. Phone call (a number is usually provided on the insurance company’s website);

b. Online portal – many insurance companies have an online form to notify the claims department of a loss;

c. Your agent (or “producer”) – many insurance companies even have a different section of their website or phone number for an agent to inform them of a policyholder’s loss;

d. Online software.

While it is easy and quick to start a claim, claimants need to continue to follow-up and provide more information. In many cases, the insurer will require more information and supporting documentation, including specific forms, to actually process and adjust the claim. These specific necessary forms should be provided to the claimant by the insurance company.

1. Promptly inform your insurance carrier of the loss (see above);

2. As soon as possible begin to mitigate the damage – protect the property and secure it against further damage as soon as it is safe and possible to do so.

3. Cooperate with your insurance company and communicate with them (and keep copies of all correspondence).

4. Make your property available for inspection as soon as it is safe and possible to do so.

5. Prepare supporting documents for your claim including:
– Inventory list;
– Description of damages;
– Photographs and/or videos of the damage;
– Receipts; etc.

The insured shall give immediate written notice to this Company of any loss, and

– Protect the property from further damage, 
– Separate the damaged and undamaged personal property, 
– Put [the property] in the best possible order, and
– Furnish a complete inventory of the destroyed, damaged and undamaged property, showing in detail quantities, costs, actual cash value and amount of loss claimed.

Reporting Deadline: Georgia insurance law does not specifically set forth a universally applicable deadline for making a property insurance claim. This means that the deadline for informing the insurer of a claim is set by the policy itself. It is important to be familiar with the insurance policy so that deadlines are not missed. As noted above, the standard Georgia fire insurance policy requires the policyholder to provide “immediate written notice” of the loss to the insurance company. Other policies may use this language, or require that the claim be made “promptly” or within a “reasonable time”.

It is always best practice to inform an insurance company of the losses sustained and that a claim is being made as soon as it is reasonably possible to do so after the damage is incurred and a determination that a claim will be filed is made. While it is never a good idea to delay in providing the insurance company with information once it has been determined that a claim will be filed, the actual meaning of “immediate” or “prompt” or “reasonable” with respect to making a claim depends on the circumstances – if a home is completely destroyed by a storm and the phones, internet, and power are off, it may take a little longer to make the claim.  

Be sure to check the language of the insurance policy to determine the notification or reporting deadlines. But, in any event, remember that best practice is to provide notice of the loss and claim to the insurer as soon as possible.

Documentation Deadline: Georgia does not set a specific deadline to provide support for a claim by statute, but instead allows this timeline to be set by the policy itself. In many cases, Georgia insurance policies follow the language contained within the standard Georgia fire insurance policy form, and require that a proof of loss document be provided within 60 days of when the loss was sustained. In any event, however, the deadline for submitting a proof of loss may be extended by agreement between the parties if circumstances make it difficult or impossible for the policyholder to comply with the deadline as set forth by the policy. Also note that, the insurance company is required to provide claim forms, (including any proof of loss document required) as well as reasonable explanations regarding their use to the policyholder within 15 days from receipt of notification of claim. 

Note, however, that no matter the actual deadline for providing supporting documentation, it is always best practice to provide a proof of loss document and support of the claim as soon as possible (while noting that the document only presents the knowledge at the time and may be amended or updated). Some deadlines for Georgia insurance companies start to run from their receipt of a sufficient proof of loss, so getting one to the insurance company quickly is a good way to get the claim process moving along, and to get your payment.

Georgia has adopted laws governing unfair claims settlement practices to protect policyholders and to provide a streamlined timeline for claims to be handled, and these laws provide deadlines for the acknowledgment and processing of claims.

Deadlines for Acknowledgment: Georgia requires insurance companies to acknowledge property insurance claims after the policyholder provides notice of the claim. Once an insurer receives a notification of claim from their insured, the insurance company is required to acknowledge the claim within 15 days. 

Further, Georgia law requires that the insurer provide the policyholder with all necessary claim forms, instructions, and assistance to help comply with the policy conditions and the insurer’s reasonable requirements within the same 15 day period.

Deadlines for Investigation: Georgia doesn’t really provide a specific breakdown of the time to begin an investigation of the claim, other than by inference of when a liability decision is supposed to be made. However, “if the insurer does not require the proof of loss to be completed, a coverage investigation as is reasonably necessary to affirm or deny shall take place within thirty (30) days from the day” the insurer received notification of the claim.

Georgia requires insurers to acknowledge and respond to any pertinent communications with respect to claims arising under its policies by the policyholder “with reasonable promptness”.

Deadline for Acceptance/Denial: Georgia insurance law generally requires that an insurer inform the policyholder of the acceptance or denial of the claim within 60 days from receipt of a completed proof of loss from the claimant. This is one reason why it is important to not delay in providing a proof of loss document to the insurance company, the deadline for determining whether the claim is covered is based on receipt of that document.  
  
If the insurance company needs more time in order to determine whether the claim is to be accepted or denied, the company must notify the claimant within 5 days after the expiration of the initial period, and give both the reason more time is needed and an estimate of the additional time needed to establish liability. However, “[t]he total time the insurer has to accept or deny liability shall not exceed 60 days from the company being notified of the claim, unless the company has documented the claim file where information that has been requested necessary to determine liability has not been submitted” by the policyholder.

Deadline for Payment: Georgia requires that payment be made within 10 days after coverage is confirmed and the full amount of the claim is determined and not in dispute.

If an insurance company is determined to be in violation of the unfair claims settlement practices requirements, the insurer is subject to penalties. While the unfair trade practices requirements do not create a private right of action (the ability for a policyholder to sue the insurance company directly for breach) the policyholder can complain to the Office of the Insurance Commissioner and the insurer can be penalized. 

Additionally, insurers have a requirement to act in good faith in investigating and settling the claim. A policyholder may file suit against the insurer for bad faith. To be successful in such a suit, the policyholder must show:

1) The claim is covered under the policy;
2) The insurer refused to pay within 60 days of a demand for payment prior to suit; and
3) The insurer’s failure to pay was motivated by bad faith.

If the claimant is successful, they can recover the full amount of loss as well as an additional 50% of the claim, and attorney’s fees.

Deadlines to File Suit: Georgia allows property insurance policies to contain language limiting the time to file suit to no less than the 2-year period from the date the of loss contained within the standard Georgia fire insurance policy. Accordingly, most policies use this 2-year time period.