Missouri Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Missouri, 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, provided a few 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 Missouri, insurance laws call this communication a “notification of claim.” In order to be sufficient, a Missouri notification of claim can be “any notification, whether in writing or by other means acceptable under the terms of an insurance policy to an insurer or its insurance producer, by a claimant, which reasonably apprises the insurer of the facts pertinent to a 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, this may even be through a mobile app;
c. Your agent – many insurance companies even have a different section of their website or phone number for an agent to inform them of a policy-holder’s loss;
d. Online software as a virtual assistant. 

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.

Specifically, the standard Missouri property insurance policy requires the policyholder to take the following actions immediately after any damage occurs:
a. give immediate written notice to the insurer of any loss; 
b. protect the property from further damage; 
c. forthwith separate the damaged and undamaged personal property;
d. put the property in the best possible order; and 
e. 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: Missouri insurance law does not set forth any specific 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. The “standard” policy in Missouri requires the policyholder to provide “immediate written notice” of the loss to the insurance company, and to “protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it 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.”

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: Missouri does not set a specific deadline to provide support for a property insurance claim by statute, but instead allows this timeline to be set by the policy itself. The standard Missouri property insurance policy requires that a proof of loss document be provided within 60 days of when the loss occurred, so many policies use this language. 

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. The standard policy proof of loss requirements need substantial information to be provided, so getting started quickly is crucial.

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). Getting a properly completed proof of loss to the insurance company quickly is a good way to get the claim process moving along, and to get your payment. 

Missouri 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: Missouri requires insurance companies to acknowledge property insurance claims within 10 working days after receiving notification of claim. Failure to acknowledge the claim within this time period can result in the insurance company being penalized. An “acknowledgement” of the claim in North Carolina is one of the following:

(1) Making Payment.
(2) Sending the claimant written acknowledgement, with a copy saved in the claim file.
(3) Giving the claimant verbal acknowledgement, with a notation of such saved in the claim file.
(4) Providing all necessary claim forms, instructions, and reasonable assistance for the claimant to comply with policy requirements.    

Deadlines for Investigation: Missouri doesn’t really provide a specific breakdown of the time to begin an investigation of the claim, other than by inference of when an investigation is supposed to be completed. In Missouri, an insurer is required to complete its investigation of a claim within 03 days after notification of the claim, unless the investigation cannot reasonably be completed within this time. Additionally, Missouri law does require that insurance companies “adopt and implement reasonable standards for the prompt investigation and settlement of claims.”  

Missouri requires insurers to acknowledge communications with respect to claims arising under its policies by the policyholder within 10 working days on all communications from any claimant that reasonably suggests a response is expected.

Deadline for Acceptance/Denial: Missouri insurance law requires that insurers must notify a claimant of the acceptance or denial of his or her claim within 15 working days after receipt by the insurer of properly executed proofs of loss. In the event the claim is denied, the denial must be in writing, and must refer to a specific policy provision giving reason for the denial. 

If more time is needed, the insurer must notify the claimant within the original 15-day period from receipt of proof of loss, and give reasons why additional time is required. Further, the insurer must continue to provide the claimant with an update of the status of the investigation every 45 days thereafter while the investigation remains ongoing, until acceptance or denial of the claim.

Deadline for Payment: The deadline for payment of a property insurance claim in Missouri can be dependent on the policy. Generally, Missouri insurance law states that an insurer must make a good faith effort to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear, and does not really state a specific deadline by which payment must be made. 

However, the standard Missouri policy requires that the amount of loss for which an insurer is liable shall be payable 60 days after a) receipt of a sufficient proof of loss, and b) ascertainment of the loss is made.

If an insurance company is determined to be in violation of the unfair claims settlement practices requirements, the insurer may be 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 state insurance department and the insurer can be penalized. 

Additionally, insurers have a requirement to act in good faith in investigating and settling the claim. While there is no direct action for a breach of this good faith duty, a Missouri policyholder may file suit against the insurer for a “vexatious” refusal to pay. 

In order to succeed in a “vexatious” refusal to pay suit, the claimant must show:
(1) the existence of an insurance policy with the insurer;
(2) that the insurer refused to pay the insured’s losses; and
(3) the insurer’s refusal was without reasonable cause or excuse. 

If a claimant is successful, the claimant may be awarded not only the amounts due under the policy, but also attorneys’ fees and punitive damages against the insurer.

Deadlines to File Suit: Missouri sets the deadline to file suit against an insurance company pursuant to the insurer’s  “bad faith” or vexatious refusal to pay contract of insurance at 5 years from the date of loss. This is because such a suit is a “quasi-tort” action. Further, a breach of contract actions for payment of money may be brought within 10 years, though the general limitation for an action on a written contract is also 5 years. Missouri law specifically prohibits parties from shortening the statute of limitations period through contract or agreement, so an insurance policy may not shorten the statutory period on which to initiate suit.