MINNESOTA: Update to Important Insurance Claim Deadlines

A common question we are asked is how long a policyholder has to complete the claims process after a covered loss.  The classic answer is that it depends on the policy, as they can differ, but there have been recent changes in Minnesota policies that are worth exploring in regard to this question.

First, it’s important to understand that many policies have various deadlines for different parts of the claim like notice requirements, proof of loss deadlines, etc.  This article will focus on the policy’s limitation period to take legal action, often described as the “Statute of Limitation.” This is the deadline the policyholder must take legal action by if they haven’t reached an agreement with the insurance company.  The failure to take legal action within that time – absent a few very limited exceptions – will result in the claim being forever barred from further recovery.  This is a firm deadline, which courts tend to strictly enforce.  If the deadline passes with no legal action taken, the policyholder will likely not be able to pursue additional payment from the insurance company on the claim.

Historically, most insurance companies have matched this deadline to Minnesota’s “Standard Fire Policy,” which requires a deadline of two years for all fire policies (Minn. Stat. § 65A.01).  Though that statute is traditionally applied to fire losses, most insurance companies write their policies for the two-year deadline to apply to all perils.  However, Minnesota also has a standard hail policy (Minn. Stat. § 65A.26) which allows for a shorter one-year limitation period for claims arising from hail.

There has been a growing trend in Minnesota where many of the major insurance carriers are dividing up their policies so that fire losses are subject to a two-year limitation period – while reducing hail coverage to only one-year.  Since many policyholders are likely unaware of the reduced hail claim deadline change that occurred after their last policy renewal, many policyholders likely still believe the entire policy has a two-year limitation on the many hail storms that occurred in 2023.  In reality, many policies have changed so those homeowners will not be able to pursue those claims further if they don’t take legal action on hail damage within one-year from the date of the loss.

To be clear, this is not a deadline to submit a claim.  It’s a “drop-dead” deadline to take legal action or risk the claim being forever waived.  If you’ve experienced damage from the hail storms of 2023 that has not been resolved and fully paid for, it is important you check with your agent or contact an attorney to review your policy to see if you have a shorter one-year limitation.  If you have the shorter limitation, you should contact one of the attorneys at SJJ Law immediately so they can discuss how to take legal action and preserve the claim.