Our Clients Ask Us: Reporting Insurance Damage

Q:

We had some damage to one of our common elements. At this point, we are not sure if we want to claim it on our insurance due to the cost of our deductible. How long do we have to notify our insurance company?

A:

A reasonable time.

How is that for an ambiguous answer?

Insureds usually must give prompt notice of any claims per their insurance policy. The Ohio Supreme Court has declined to hold that a particular length of time is an unreasonable delay. Keep in mind that failure to provide prompt notice may result in a material breach of the notice requirement, resulting in a denial of the Association’s claim. Whether the delay in notification to the insurer is unreasonable is generally based on the following:

1. Reason for Delay in Notification;
2. Length of Delay in Notification;
3. All circumstances surrounding the claim;
4. Prejudice to the insurer as a result of the delay in notification; and
5. Whether the breach of the notice provision was a breach of the insurance policy.

In general, it is better to be safe than sorry. Although there is a concern for insurance premium costs, it would be a bad situation for a delay in notification to bar insurance coverage for a potentially major claim, the cost of which would fall of the members of the Association.

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