Louisiana Guide To Property Insurance Claims: Deadlines & FAQs

In Louisiana, making a claim under your property insurance policy requires informing your insurance company that your property has been damaged or destroyed. Insurance companies call this a “First Notice of Loss.”

Usually, there are a few ways by which you can inform your insurance company of the loss, including:

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 the First Notice of Loss (or “FNOL”) doesn’t really require much information, the more information you provide your insurance company initially, and the faster you provide follow-up supporting information (including a Proof of Loss document) the faster and easier your claim can be processed and paid. Sometimes, it is impossible to provide everything that may be required quickly, and that;s ok. It’s important to be thorough and clear in your communications with your insurance company regarding your claim, and the nature of the claim may make it difficult to be quick. However, when possible, it is always better to not have your insurance company waiting on you.

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

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: It is generally the case that a property damage claim must be reported to your insurance provider within a reasonable amount of time. It is important, however, to check your insurance policy for any applicable deadlines to make your claim, as the longstanding rule in Louisiana is that the insurance contract is the law between the parties. Be sure to initiate your claim promptly to avoid missing out on coverage.

Note, however, that Louisiana has special timelines in the event of a declaration of a state of disaster, or state of emergency. In those situations, the language of the policy can be overridden and a much longer time period allowed. If disaster or emergency is declared, like a hurricane, you generally have 180 days to initiate your claim, although this deadline can also be subject to extension or modification.

Documentation Deadline: There may also be a deadline for submitting documentation and evidence to support your claim. Just like with making the claim in the first place, it is always a good idea to check your insurance policy for applicable deadlines, you don’t want to be in a position where the insurer can claim you breached the insurance contract by not adhering to the proper procedure or meeting applicable deadlines. Making sure you meet the deadlines will prevent unnecessary delays in the claims process.

Deadlines for Adjustment: It’s not just you, your insurance company also has deadlines that they must be careful to meet. And, luckily for policyholders in Louisiana, these timelines are relatively short and designed to keep your claim moving.

In normal circumstances, insurance carriers in Louisiana must begin the process of adjusting your claim within 14 days of receiving notice of your loss. This deadline can be extended to 30 days in the event of a “catastrophic loss” and extended an additional 30 days if there is a declared emergency. However, no additional extensions are allowable without a vote of each of the Senate Committee on Insurance and the House Committee on Insurance, voting separately, and even then, only one additional extension could apply. Failure to comply with the applicable deadline subjects the insurer to penalties.

YES! Louisiana passed a very progressive law in 2023 adding the right to see the insurance claim within the state’s “Policyholder Bill of Rights.” This gives amazing and unambiguous access to Louisiana policyholders.

If you request the insurance claim file, the insurance company must send you all the estimates, notes, photos, videos, reports, bids, plans, drawings, etc., used in any way during the claims process. And if they don’t? You may be entitled to penalties!

Making the request is easy, but be sure to do it right. Consult our article on “How to Request Your Insurance Claim File,” and use our free “Request Form.” Even better, use ClaimSpot’s tools to make the request.

Deadline for Payment: In Louisiana insurers are required to pay any undisputed portion of your property insurance claim (and make an offer to settle) within 30 days from their receipt of “satisfactory proof of loss”. Submitting your own appropriate proof of loss document without waiting for a request from the insurer can help get this clock running and speed up the claims and payment process.

If the insurance company doesn’t begin to investigate and adjust the claim timely, they can be subject to a penalty of up to 50% of the ultimate claim value.

Just like the deadline to initiate adjustment of your claim, insurers can be subject to harsh penalties in some cases if they do not comply with the payment timing requirement. If the insurance company doesn’t pay any undisputed portion on time, they may be required to pay bad faith damages and attorney fees, unless there are legitimate reasons for the delay or denial of payment.

Deadlines to File Suit: Nobody wants an insurance claim to devolve into a lawsuit against your insurer, but it does happen. In Louisiana you may have a suit against your insurance company for bad faith and associated penalties (as described above), as well as for payment of your claim. While generally in Louisiana, a breach of contract suit may be filed up to 10 years from the breach, insurers are able to limit your right of action “against the insurer to a period of [not less than] twenty-four months next after the inception of the loss” through language in the insurance contract. Failing to file within the prescribed timeframe could result in forfeiture of your right to compensation, so make sure to keep that in mind.

A.  For losses that arose due to a catastrophic event for which a state of disaster or emergency was declared pursuant to law by civil officials, for those areas within the declaration, no damages to covered property shall be automatically denied by the inability of the policyholder to provide sufficient proof of loss within the time limits and requirements of the policy.  The time limit for the submission of proof of loss shall be not less than one hundred eighty days.  The time limit shall not commence as long as a declaration of emergency is in existence and civil authorities are denying the insured access to the property.

B.  For losses that arose due to a catastrophic event for which a state of disaster or emergency was declared pursuant to law by civil officials, for those areas within the declaration, any policyholder with replacement cost provisions shall be entitled to complete repairs to the property within one year from the date of the loss or the issuance of applicable insurance proceeds, whichever is later.  Adherence to this provision shall entitle the policyholder with a replacement cost provision to receive full value of the covered damage that has been repaired, without reduction due to depreciation.

C.  The provisions of this Section shall be applicable to all new policies and renewal policies delivered in the state of Louisiana after April 18, 2006.

La. R.S. §12:1264 on Louisiana State Legislative Website

Plain English Summary: This statute only applies to losses that arise from a declared state of disaster or emergency. For Louisiana residents, tropical storms and hurricanes are an obvious circumstance when this statute could be relevant. Suppose a property owner has losses from such a disaster. In that case, this law suspends any aggressive “proof of loss” requirements within the policy and grants property owners a lot of leeway – in other words, insurance companies are prohibited from denying a claim because a proof of loss is late (or incomplete).

A. For losses that arise due to a catastrophic event in which a state of disaster or emergency is declared by civil officials, for those areas within the declaration, if a civil authority prohibits the insured from using their residential premises as a result of damage to a neighboring premises due to a peril covered by the policy, the civil authority prohibited use coverage shall be afforded as provided in the policy.

B. For purposes of this Section, insurers shall interpret all actions of a civil authority without regard to whether formal orders of evacuation were issued.

La R.S. §22:1273 on Louisiana State Legislative Website

Plain English Summary: This statute only applies to losses arising from a declared disaster or emergency. In these events…if the property owner cannot use their property because the city, state, or other authority prohibits entry into the area, then this law requires the insurance company to consider this a “loss of use” and the policyholder is entitled to “loss of use” or “additional living expense” costs.

Upon receiving notice of loss from the insured, the insurer shall provide within thirty days to the insured a form suitable for filing a proof of loss and shall advise the insured that he is required under the terms of the policy to submit a proof of loss.

La. R.S. §22:1312 on Louisiana State Legislative Website

Plain English Summary: Many insurance policies require the policyholder to submit a “Proof of Loss” as a condition to pay the claim. This statute prevents the insurance company from paying hide-and-seek with this form and requirement. It basically says that if the insurance company wants a proof of loss form from the policyholder, it must provide the form to the policyholder and tell the policyholder about the requirement within 30 days from when first being notified of the loss. It’s unclear what the consequences are if the insurance company fails to do this. As we explain in the Ultimate Proof of Loss Guide, this is just another law showing that Louisiana is very unlikely to allow a claim denial based on a proof of loss technical foul.

A. In the event of a total loss to an insured dwelling caused by a covered peril, if the insured has additional living expense coverage, the insurer shall, upon request by the insured, render an advance payment equal to the estimated value of three months of increased cost of living expenses, as defined in the policy, required for the members of the household to maintain their normal standard of living. Further payments of additional living expense coverage, after the advance period, shall be payable upon submission of satisfactory proof of loss, if it is determined that the actual cost of incurred additional living expenses exceeds the amount previously advanced.

La. R.S. §22:1338 on Louisiana State Legislative Website

Plain English Summary: This statute accelerates “additional living expense” money to homeowners in the event of a “total loss.” In such event, the insurance company must immediately advance the homeowners three months of additional living expense funds. More funds can be acquired later when the homeowner provides proof of loss, but this law requires an “advance” right at the beginning of the claim so the homeowner can get on their feet.