Can You Reopen a Closed Property Damage Insurance Claim?

If you filed an insurance claim for property damage and discovered additional damage after it was closed, it’s important to understand your options. Claims may be closed after the insurance company completes its investigation, makes a payment, or determines that no additional benefits are owed. However, this doesn’t mean you lose the right to seek additional compensation. You may be able to reopen a closed property damage insurance claim to request additional payment, depending on the circumstances.

Key Takeaways

• If you filed a property damage claim that was closed, it may be possible to reopen it if it was not properly assessed or new damage was discovered.
• Common grounds for reopening a claim can include discovering supplemental or previously missed damage, correcting adjuster errors, addressing underpaid settlements, or switching from actual cash value to replacement cost value.
• Under Florida law, you generally only have one year from the original date of loss to reopen a claim, 18 months for supplemental claims to cover higher repair costs, and two years to file a lawsuit if necessary.

When Can You Reopen a Closed Property Damage Insurance Claim?

Whether you will be able to reopen a closed property damage insurance claim will largely depend upon the facts surrounding the original claim and the reason you are seeking additional compensation. Generally, grounds may exist to reopen a claim when the original claim was not assessed properly, new damage was discovered, or the insurance company did not pay out all the benefits to which you were entitled.

Some common reasons to reopen a property damage insurance claim can include the following:

• Supplemental damage was discovered
• New damage was found that was missed during inspection
• The insurance adjuster made an error
• The settlement was underpaid
• You are switching from actual cash value to replacement cost value

In some cases, hidden mold or structural damage might be discovered later that wasn’t included in the original claim. If your repair costs have increased due to supplemental damage, you may be entitled to reopen the claim.

Deadlines to Reopen a Closed Property Damage Claim

Importantly, you only have a limited amount of time to reopen a closed property damage claim. Under Florida law, you generally have one year from the original date of loss to reopen a closed claim, such as in cases involving hurricane and windstorm losses. If you are filing a supplemental claim to request additional money because repair costs were higher than you had expected, there is typically an 18-month deadline. In the event the insurance company refuses to pay out and it is necessary to file a lawsuit, there is a two-year statute of limitations in place to commence a case.

How to Reopen a Claim for Property Damage

If you are considering reopening a claim for property damage, it’s important to understand that there are specific steps to follow. You will need to:

1. Review your original claim: Review your original claim file and any settlement documents. You will also want to look closely at any inspection reports and correspondence to determine what damage was previously documented and whether the claim had actually been closed.
2. Send a written request to the insurer: A written request to reopen the claim must be sent to the insurer within the applicable time period, explaining the basis for the request.
3. Obtain a professional estimate: Get an estimate of the supplemental or missed damage from a licensed contractor to strengthen your case.
4. Submit documentation: Submit photos that show newly discovered damage, receipts for repairs, written reports from engineers or specialized trader experts, and contractor estimates to the insurance company.
5. Retain records of all correspondence: Be sure to keep a copy of all correspondence with the insurance company. Take notes during phone calls, including the date the conversation took place and the name of the person you spoke with.

After submitting your request to the insurance company, along with the supporting documentation, you may need to follow up regarding its decision. If the insurance company refuses to reopen your claim, ask for an explanation in writing. In such cases, it’s best to consult with an experienced property damage attorney who can best advise you of your options to move forward.

What Happens If You Can’t Reopen the Claim?

After receiving your request to reopen the closed property damage claim, the insurance company might review the additional damage and supporting documentation. Another inspection may be scheduled to determine whether additional benefits should be paid out. Depending on the case, the insurer may approve the supplemental claim, partially approve it, or deny it entirely.

In the event the claim is denied, you may have several options available to you. For instance, you may file an appeal or request reconsideration from the insurer, pursue a dispute resolution process if one is included in your policy, or file a complaint with the applicable state insurance regulator. If the claim was improperly denied or underpaid, you may be eligible to take legal action. A property damage attorney can conduct a detailed review of your policy, assess the company’s process for valuing your claim, and negotiate to maximize your payout. If negotiations are unsuccessful, they can evaluate whether your claim should be brought into the courtroom.

Contact an Experienced Property Damage Attorney

If you discovered additional damage after your property damage insurance claim was closed, you may be entitled to reopen your claim. The skilled property damage attorneys at Saka Bryant, P.A. can review your case and help you determine the best course of action to ensure you recover the payout you deserve. Contact us to schedule a free, confidential, no-obligation consultation to discuss your options and learn how we can assist you.