Insurer notified me that claim is closed – but there is still work to do! Robert Lange asked 2 weeks ago
Insurer notified me that claim is closed – but there is still work to do!

Hello,

I am a victim of the Eaton Wildfire in Los Angeles. My home was a total loss and I’m working through the claim process with my insure. I have an urgent questions and was hoping to get a response from UP quickly, if possible.

My insurer (AAA) sent me a letter that contains the following notice:

“*In addition, we are required to inform you of a very important time limit and provision contained in your policy as quoted below:

CONDITIONS – PART I

  1. Suits Against UsWe may not be sued unless all terms of this policy have been fully complied with. In addition, legal action may not be brought against us under PART I unless the action is started within one year after the date of loss.However, if the loss is related to a state of emergency, as defined in section 8558 of the Government Code, legal action may not be brought against us under PART I unless the action is started within two years after the date of loss.

Under California law, a contractual limitation period such as the one cited above begins to run on the date of loss, is tolled (stops running) when the insured notifies the insurer of the claim, and continues to run again when the insurer notifies the insured in writing the claim has been closed. Thus, it is the Exchange’s position that any tolling of the contractual limitation period ends effective the date of this letter.*”

Is AAA asserting that the claim is closed? How can that be the case when:

  • Additional coverages and still need to be discussed
  • Personal Property Inventory is not complete. They have paid 80% advance and I am still working on the itemized inventory
  • Coverage A advance payments have not been received. They said the check is in the mail, but I have not received nor signed the checks.

Please help!

Thank you,

Rob

1 Answers
Joel Gumbiner Joel Gumbiner Expert answered 1 week ago
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Rob –

The day the file closed, even if improperly, the clock starts running on the time you need to file a lawsuit against the insurer. Your policy says how long you have from the date of loss. The clock turned off when you made the claim. The clock remained off until the date AAA said it closed the file. So, you need to count the number of days the clock has been running (e.g. 2 days between date of fire and your claim? And then the number of days since you received this letter). Make sure to conservatively calendar the one year (365 total days) and calendar that date. If nothing changes between now and then, that would be the last day you have to file the litigation. I would suggest calendaring 1/1/26 as your date as that is certainly before the Eaton fire started and you do not want to miss that date. If AAA does not re-open the claim and pays nothing further then you must sue before that one-year date.

You should immediately write AAA back and point out that the file was closed in error. Specifically state the portions of the claim that remain open and unresolved. If you send in additional documents, such as an inventory, AAA will have no choice but to re-open the claim and that will turn the clock off again. The rest of the letter you received explained why they considered the claim over and the reason AAA was closing the claim but it certainly seems inappropriate at this early stage so it appears AAA is just setting traps for insureds like you.

From this point forward, you need to make sure everything is in writing and/or email. Send your email telling them everything you have related below. Send in any documents you have that refutes whatever reason AAA has given in that letter for considering the claim closed. If you do not yet have your inventory, tell AAA that you are making a personal property claim, that you are working on the inventory and you will be submitting is shortly. Make sure to tell your adjuster that your additional living expense claim will be continuing for some time as you will not be rebuilding or relocating for some time and will need ALE payments for the foreseeable future. It should not be difficult for you to get them to write you back that the file has been re-opened and then the clock is off again.

Kindly, Joel