Statute of Limitations Starts to Run When Insurance Claim Closed Even Without Denial Letter

Make sure you timely file suit when an insurer denies coverage. In De Jongh v. State Farm Lloyd's, the Fifth Circuit (docket 15-20522) recently confirmed that under Texas law, a policyholder must file suit within two years of their claim being closed - even if the policyholder does not receive an official denial letter. The homeowner sought coverage for hail damage to her roof. State Farm originally sent an adjuster, whose internal report indicated that the hail was not large enough to damage the roof, and recommended the claim be denied based on maintenance exclusions. The claims file contained notes evidencing its intention to issue a denial of coverage letter, but the homeowner asserted she never received the denial letter. State Farm then closed the claim in July 2012. In August 2012 the homeowner requested that State Farm reinspect the property. State Farm sent another adjuster, who found additional damage but again denied the claim because the covered damage did not meet the deductible. Citing earlier precedent, the Fifth Circuit held that the statute of limitations began to run when State Farm closed the claim for the first time - not when it sent actual written notice that the claim was denied following the second inspection. A copy of the opinion is available here: http://www.ca5.uscourts.gov/opinions/unpub/15/15-20522.0.pdf