Filing a homeowners insurance claim in Pennsylvania can be stressful, especially when you’re waiting for the insurance company to process your claim and issue payment. If your home has been damaged by fire, water, wind, or another covered event, you need financial relief fast to begin repairs and restore your home. But how long does an insurance company have to pay a claim in PA?
Pennsylvania law has specific guidelines that insurers must follow when handling claims, but delays can still happen. Understanding your rights as a policyholder can help you navigate the process and take action if your claim is taking too long. In this article, we’ll explain how long an insurance company has to pay a claim in PA, what you can do if there are delays, and how a public adjuster can help you get the settlement you deserve.
How Long Does an Insurance Company Have to Pay a Claim in PA?
When you file a homeowners insurance claim in Pennsylvania, you expect a timely response. But how long does an insurance company have to pay a claim in PA? The answer depends on several factors, including state regulations, policy terms, and the complexity of the claim.
In Pennsylvania, insurance companies must acknowledge a claim within 10 business days of receiving notice. They are then required to investigate and make a decision on the claim within 30 days, as outlined by the Pennsylvania Unfair Insurance Practices Act. If an insurer needs more time, they must provide a written explanation every 45 days until the claim is resolved.
However, receiving a decision doesn’t always mean you’ll get paid right away. Once the claim is approved, insurers typically have 15 to 30 days to issue payment, depending on the policy and the specifics of the loss. But if there are disputes, low settlement offers, or unnecessary delays, it can take much longer.
Homeowners facing long wait times should keep detailed records of all communication with their insurance company. If your claim is dragging on without a valid reason, you may need to take action to protect your rights and secure the payment you’re owed.
Can You Sue an Insurance Company for Taking Too Long?
In Pennsylvania, insurance companies are legally required to handle claims in a timely manner. If they fail to comply with state regulations, engage in unfair settlement practices, or intentionally delay payment without a valid reason, they could be acting in bad faith. This means they are not upholding their contractual obligations to you as a policyholder.
When an insurance company acts in bad faith, you have the right to take legal action. Pennsylvania law allows homeowners to file a bad faith insurance claim lawsuit if they can prove the insurer:
- Unreasonably delayed investigating or paying a valid claim
- Denied the claim without proper justification
- Failed to communicate important information about the claim process
- Offered an unfairly low settlement without reasonable explanation
If you win a bad faith lawsuit, you may be entitled to compensation beyond just your claim payment. This could include interest, attorney fees, and even punitive damages if the insurer’s behavior was particularly egregious.
That being said, lawsuits can be time-consuming and costly. Before going down that road, many homeowners find it beneficial to work with a public adjuster to fight for a fair settlement without legal action.
Common Reasons for Claim Delays in Pennsylvania
While Pennsylvania law requires insurers to process claims within specific timeframes, there are several reasons why delays happen.
1. Incomplete or Inaccurate Documentation
Insurance companies require thorough documentation before approving a claim. If your claim is missing key details—such as damage photos, repair estimates, or proof of loss—your insurer may request additional information, slowing down the process.
Tip: Keep detailed records and submit all necessary documents as soon as possible to prevent back-and-forth delays.
2. Disputes Over Damage or Coverage
Insurance companies often investigate whether the damage is truly covered under your policy. If they believe the damage was due to wear and tear, poor maintenance, or an excluded cause, they may delay or deny payment.
If your insurer disputes your claim, consider hiring a public adjuster to provide an independent damage assessment and negotiate on your behalf.
3. High Claim Volume (Storm or Disaster Situations)
After a major storm, fire, or flood event, insurance companies may be overwhelmed with claims. This can lead to processing backlogs and extended wait times.
Tip: If you’re filing a claim after a widespread disaster, submit it as soon as possible to get ahead of the queue.
4. Low Settlement Offers & Prolonged Negotiations
Some insurance companies intentionally delay settlements by offering less than what your claim is worth, hoping you’ll accept out of frustration. If you reject their first offer, negotiations can stretch out for weeks or even months.
Tip: Never accept an unfair settlement. A public adjuster can handle negotiations and ensure you receive a fair payout.
5. Bad Faith Insurance Tactics
In some cases, an insurance company may act in bad faith, purposely delaying payment without a valid reason or failing to communicate properly. This is illegal in Pennsylvania, and policyholders have the right to take legal action.
Tip: If your insurer is unresponsive or continuously delaying your claim, consult with a public adjuster or attorney to explore your options.
Help with Insurance Settlement in PA
If you’re still wondering, how long does an insurance company have to pay a claim in PA, and you’re dealing with frustrating delays, you’re not alone. Many homeowners struggle to get the fair settlement they deserve, especially when insurance companies slow down the process or offer lowball payouts.
This is where a public adjuster can make all the difference. Unlike insurance company adjusters, who work for the insurer, a public adjuster works for you—helping to properly document your claim, negotiate with the insurance company, and ensure you receive the maximum payout under your policy.
At Alliance Adjustment Group, we have extensive experience handling homeowners insurance claims in Pennsylvania. Whether you’re facing delays, a denied claim, or an unfair settlement offer, we can step in and fight for what you’re owed. Don’t wait any longer for your insurance company to do the right thing—contact us today for a claim review and let us help you get the settlement you deserve.
Disclaimer:
The information provided on this website is for general informational purposes only and does not constitute legal advice.
While we strive to provide accurate and up-to-date information, insurance policies and regulations can vary. It is important to consult with your specific insurance provider or a qualified professional for advice tailored to your individual circumstances.