Proof of Loss
The Intensifying 60-Day Proof of Loss Requirement by Insurance Companies.
Recently, Olympus Insurance Company was added to the growing list of property insurers that require their policyholders to provide a signed, Sworn Proof of Loss (“POL”) within 60 days after the date of loss. This list now includes State Farm, Allstate, Castle Key, and Olympus.
What is the Proof of Loss Requirement?
Most insurance policies require insureds to submit a POL within 60 days of the insurer’s request. With this change in policy language, policyholders are now required to submit the POL 60 DAYS AFTER THE DATE OF THE LOSS, whether or not it was requested by the carrier!
Why is this an issue?
Instead of requesting the POL—thereby putting the policyholder on notice of their obligation—the companies have now snuck in this 60-day requirement knowing most insureds will be confused by or simply unaware of it and will fail to comply with this critical policy condition, to the detriment of their claim.
This is problematic because the failure of an insured to submit a POL within 60 days after the date of loss will be deemed by the insurance company as a failure to comply with a condition of the policy, which is a basis for denying the claim (even if the claim would have been covered). Additionally, complete failure to comply with this policy condition likely precludes an insured from prevailing in a lawsuit (despite the fact that they have a valid claim).
While parties are generally required under the law to know the terms of a contract between them, insurance policies are notoriously difficult to understand—even for people in the business. Many insureds only read the declarations pages outlining premium, deductibles, and a short “checklist of coverage” (that actually doesn’t really explain coverage at all). This 60-day POL requirement is buried deep within this hard to understand document.
Law Offices of Scott Klotzman, P.A. strives to keep you in the loop—helping you stay informed, educated and supported. If you have questions regarding this or any other insurance-related inquiry, please contact us at email@example.com or 954-637-7041. Policyholders can begin the insurance claim review here.
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