Oklahoma Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Oklahoma, 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, the policy is identified, 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 Oklahoma, 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, 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 Oklahoma fire 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: Oklahoma 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 Oklahoma 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: Oklahoma does not really set a specific deadline to provide support for a claim by statute, but instead allows this timeline to be set by the policy itself. The standard Oklahoma 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. And further, other sections of Oklahoma insurance regulations contemplate a 60-day period for providing proof of loss. 

Note that Oklahoma regulations specifically state that in the event an insurance policy (or other law) requires an insured to provide “a written sworn proof of loss within sixty (60) days from the date of fire or loss” the insurer cannot rely on a failure of the insured to provide such proof of loss as a reason for denying the claim unless the insurance provided two blank forms for the execution of the proof of loss, and a bold-faced-type warning that the proof of loss must be completed and returned within 60 days from when the blank forms were received. Additionally, unless the policy specifically requires some time limit, insurers are prohibited from “mak[ing] statements, written or otherwise, requiring a claimant to give written notice of loss or proof of loss within a specified time limit and which seek to relieve the company of its obligations if such a time limit is not complied with.” 

In any event, however, the deadline for submitting a proof of loss may be extended by agreement between the parties. The standard policy proof of loss requirements need substantial information to be provided, so getting started quickly is crucial. Additionally, Oklahoma requires insurers to provide proof of loss and other policy-required forms within 30 days after receipt of notice 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). 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 facilitate payment.  

Oklahoma 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: Oklahoma requires insurance companies to acknowledge property insurance claims within 30 days after receiving notification of the claim unless payment is made within that time period.
 
Further, Oklahoma requires insurers to provide all “necessary claim forms, instructions and reasonable assistance so that [policyholders] can comply with the policy conditions and reasonable requirements [of the insurer]” within the same 30-day period. Providing these forms and instructions counts as “acknowledgement” of the claim.    

Deadlines for Investigation: Oklahoma doesn’t really provide a specific breakdown of the time to begin an investigation of the claim. However, Oklahoma does specify that insurers are required to “adopt and implement reasonable standards for prompt investigations of claims arising under its insurance policies.” Further, the general requirement is that, absent a reasonable need for more time, Oklahoma insurance companies are supposed to “complete investigation of a claim within sixty (60) days after notification of proof of loss.”   

Oklahoma requires insurers to adequately respond to any “pertinent written communication including but not limited to e-mail or other forms of written electronic communication” or verbal communication that the insurer documented, within 30 days from receipt of the communication from a claimant when it reasonably appears that a response is expected.

Deadline for Acceptance/Denial: Oklahoma insurance regulations generally require insurers to notify the policyholder whether their claim is accepted or denied within 45 days from the insurer’s receipt of a properly executed proof of loss. If the insurer reasonably needs additional time beyond the original 45 days to  complete its investigation into whether to accept or deny the claim, the insurer must provide written reasons why more time is needed within that 45-day period, and if the investigation remains incomplete, continue to provide written reasons why every 45 days thereafter.

Note, however, that there are discrepancies between Oklahoma insurance statutes and the Oklahoma administrative code. While the 45-day period set forth by the administrative code and set forth above is generally accepted for the acceptance or denial claim, the statutes regarding unfair claims practices set the deadline for acceptance or denial at 60 days, and note that in no event other than an investigation for arson or fraud should the investigation exceed 120 days.  

Deadline for Payment: Oklahoma requires that insurance companies “attempt in good faith to effectuate fair and equitable settlement of claims submitted in which liability has become reasonably clear.” Note that the standard policy provides that payment shall be made within 60 days after the insurance company’s receipt of a properly executed proof of loss and the company has ascertained the amount of the covered loss. 

If an insurance company is determined to be in violation of the unfair claims settlement practices requirements, the insurer can be subject to penalties. While the unfair trade practices requirements do not specifically create a private right of action (the ability for a policyholder to sue the insurance company directly for breach) the policyholder can use violations of the Unfair Settlement Practices Act as evidence in a case brought against the insurer for bad faith. 
Insurers have a requirement to act in good faith in investigating and settling the claim.

A policyholder may file suit against the insurer if they believe the insurer has failed to act in good faith in the processing and settlement of the claim. In order to establish an insurer’s bad faith the claimant must show:

(1) He was covered by the insurance policy;
(2) The the insurer acted unreasonably under the circumstances;
(3) The insurer failed to deal fairly and act in good faith toward the insured in handling the claim;
(4) The breach or violation of the duty of good faith and fair dealing was the direct cause of the insured’s damages.

If an insurance company is found to have acted in bad faith, the insurance company can be liable for punitive damages as well as the amounts that should have been paid under the policy.

Deadlines to File Suit: While Oklahoma’s general statute of limitation for breach of contract claims is 5 years from the breach, insurance regulations provide that insurance companies in Oklahoma are allowed to limit the time a policyholder can file suit to 1 year from the date of loss for property insurance policies. The standard policy requires suit to be filed within 12 months after inception of loss, so most Oklahoma policies use similar language and 1 year deadline.