Utah Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Utah, 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. Utah insurance law specifically states that notice to an agent is sufficient to begin a property insurance claim in Utah, and further, states that: “it is a sufficient service of notice . . . if a first class postage prepaid envelope addressed to the insurer and containing the proper notice . . . is deposited in any United States post office within the time prescribed.”  

In many cases, an insurance company will call this communication a first notice of loss, or FNOL. In Utah, 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. It is important to make sure that these forms are completed promptly, so the claim can keep moving forward.  

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.

Reporting Deadline: Utah 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. A policy may require the policyholder to provide “immediate written notice” of the loss to the insurance company, or may use language that the claim be made “promptly” or within a “reasonable time”. Note, however, that Utah specifically allows notice to the insurance company to be placed in the mail, and have that date count for providing any required notice under the policy. Further, Utah law specifically states that failure to provide any notice by the policy deadline does not invalidate a claim if it was not reasonably possible to give the notice within the prescribed time and that notice was given as soon as reasonably possible. 

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: Utah 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, Utah insurance policies 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. Just like for making the claim itself, as noted above, Utah law specifies that if a policy contains a deadline for submitting a proof of loss in addition to the initial notice of loss, the failure of the insured to meet that deadline does not invalidate a claim if it was not reasonably possible to provide the proof of loss within the prescribed time and the proof of loss was given as soon as reasonably possible. 

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 Utah insurance companies start to run from their receipt of a sufficient and properly executed 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.

Utah 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: Utah 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 (unless payment is made within that time, or the insurance company has a reason acceptable to the Utah Insurance Department for why it can’t respond in that time period). 

Further, Utah 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: Utah 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, Utah law does require that insurance companies “adopt and implement reasonable standards for the prompt investigation and processing of claims.”

Utah requires insurers to acknowledge and respond to any pertinent communications with respect to claims arising under its policies by the policyholder within 15 days of receipt of the communication when a response has been requested.

Deadline for Acceptance/Denial: Utah insurance law generally requires that an insurer must complete its investigation and inform the policyholder of the acceptance or denial of the claim within 30 days from receipt of a properly executed 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 the initial 30-day period, and give the reason more time is needed. Further, if the investigation remains incomplete, the insurer must send the claimant a letter 45 days from the date of initial notification and again every 45 days thereafter while the investigation remains ongoing, setting forth the reasons additional time is needed for investigation, “unless the first party claimant is represented by legal counsel or a public adjuster.”

Deadline for Payment: Utah does not really specify the timeline by which payment must be made after the claim determination is made, however, it is an unfair business practice for an insurance company to not attempt in good faith to “effectuate a prompt, fair, and equitable settlement of claims” once liability is reasonably clear.” Specifically, it is generally required that Utah insurance companies pay within 30 days after receipt of proof of loss absent reasonable evidence to dispute its responsibility for payment.

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 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. A policyholder may file suit against the insurer for breach of contract if they believe the insurer has acted in bad faith. 

According to Utah courts, “[t]he good faith duty to bargain or settle under an insurance contract is only one aspect of the duty of good faith and fair dealing implied in all contracts and a violation of that duty gives rise to a claim for breach of contract.”

Deadlines to File Suit: Utah specifically sets the deadline to initiate a lawsuit pursuant to a insurance policy as “within three years after the inception of the loss” and that an insurance policy may not limit the time period to file suit to a period shorter than that provided by statute.