Virginia Guide To Property Insurance Claims: Deadlines & FAQs

In order to initiate a claim under a property insurance policy in Virginia, 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 Virginia, insurance laws call this communication a “notice of claim” or “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 Virginia 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) 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: Virginia 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 Virginia 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: Virginia 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. The standard Virginia 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. 

Note, however, that Virginia specifically requires that an insurance company provide any required proof of loss forms to the insured within 15 days from receipt of notice of loss. Also note that according to Virginia insurance regulations, “[i]f an insurance policy requires a proof of loss . . . to be filed within a specified time, all time consumed in an effort to adjust the claim shall not be considered part of such time.”

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). Some deadlines for Virginia insurance companies with respect to settling the claim start to run from the 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.

Virginia 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: Virginia requires insurance companies to acknowledge property insurance claims within 15 days after receiving notice of the claim unless payment is made within that time period. Virginia specifically counts notice to an agent as notice of the claim to the insurance company, and requires that if the acknowledgement of the claim is not written, a notation of the acknowledgement must be made in the claim file and dated. 
 
Further, as noted above, Virginia law requires that the insurer provide the policyholder with any necessary “claim forms, instructions, and reasonable assistance in order for the claimant to comply with the applicable policy conditions and the insurer’s reasonable requirements” within 15 days from receiving notice of the claim.     

Deadlines for Investigation: Virginia insurance regulations don’t really provide a specific breakdown of the time to begin an investigation of the claim, other than by inference related to the fact that absent sufficient reasons the investigation should be completed within 45 days. However, Virginia law does require that insurance companies “adopt and implement reasonable standards for the prompt investigation and settlement of claims.”

Virginia requires insurers to acknowledge communications with respect to claims arising under its policies to which a response is reasonably expected by the policyholder within 15 days of receipt of such communication.

Deadline for Acceptance/Denial: Virginia insurance law requires that an insurer must affirm or deny coverage of claims within 15 calendar days of the receipt of a properly executed proof of loss. If the insurance company needs more time to determine whether a claim should be accepted or denied, the company is required to inform the policyholder within the same 15-day period after receipt of the proof of loss giving the reasons more time is needed.

Additionally, if the investigation still remains ongoing, the insurance company must send a written notice explaining the reasons additional time is needed for the investigation within 45 calendar days from the date of the notification of claim and every 45 calendar days thereafter.

Deadline for Payment: The deadline for payment of a property insurance claim in Virginia can be dependent on the policy. Generally, Virginia 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 North Carolina 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 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. Virginia uses a reasonableness test to determine whether an insurer has committed bad faith.

Further, in Virginia, if an insurer is found liable for acting in bad faith the insurer may be required to pay the policyholders costs and attorneys’ fees as well as the amounts due under the policy.

Deadlines to File Suit: Virginia regulations state that: “No provision in any insurance policy shall be valid if it limits the time within which an action may be brought to less than one year after the loss occurs or the cause of action accrues.” Note, however, that the standard fire insurance policy has a 2 year limitation period.