Materials not as promised in Washington What happened next

Have you ever worried about missing an insurance claim deadline in Washington? You’re not alone; many face this issue. Knowing the law helps you navigate these challenges. This article explores a key court decision that clarifies your options.

Situation

Situation Example

In Washington, there was a construction company building a new medical center. They bought an insurance policy to protect them if any damage happened while they were working. This policy was supposed to cover any damages that came from bad work, but not the cost to fix the bad work itself. One day, the construction stopped, and the owners of the medical center were not happy. They said the materials used were not good enough and didn’t follow the agreement. They sued the construction company, saying the building materials were faulty.

Judgment

The court decided in favor of the construction company. It ruled that their right to sue the insurance company started when the insurance company denied their claim, not when the damage first happened. This decision was based on case No. 67905-3, and the court sent the case back to see if the insurance company was harmed by the delay in notification.

Solution

Immediate Actions

If you find yourself in a similar situation where your insurance claim has been denied, the first thing you should do is gather all relevant documents. This includes your insurance policy, any correspondence with the insurance company, and any evidence of the damage or loss. You should carefully review your policy to understand what is covered and what isn’t. Make notes of any deadlines or time limits mentioned in the policy. It’s also important to document all communications with the insurance company, noting dates and details of what was discussed.

Filing the Lawsuit

To file a lawsuit, you need to draft a complaint, which is a legal document that outlines your claims against the insurance company. It should explain why you believe the insurance company is wrong in denying your claim and what you want the court to do about it. This could be compensation for damages, coverage under the policy, or both. Once your complaint is ready, it needs to be filed with the court. There will be a filing fee, which varies depending on the court. After filing, you must serve the insurance company with a copy of the complaint, which means delivering it in a way that is legally acceptable, such as through a process server.

Negotiation and Settlement

Before going to trial, it’s often beneficial to try to settle the dispute out of court. This can save both time and money. You might engage in negotiation directly with the insurance company or through mediation, where a neutral third party helps facilitate a settlement. Be prepared to compromise, but also know the minimum you are willing to accept. If a settlement is reached, it should be documented in writing and signed by all parties involved. If negotiations fail, then the case will proceed to court, where a judge or jury will make the final decision.

FAQ

What starts the legal action?

Legal action against an insurance company typically begins when they deny your claim for coverage. This denial can be in writing or through a failure to respond to your claim.

How is ‘prejudice’ determined?

Prejudice is determined by looking at whether the insurance company’s ability to handle the claim was significantly harmed by any delays or lack of information provided by you.

What is ‘radiating damage’?

Radiating damage refers to additional damage that happens because of a problem with the original work, like a leak causing water damage. It may be covered if it occurs during the policy period.

When does the policy cover damages?

The policy covers damages that happen during the time the insurance is active. It doesn’t cover fixing bad work but does cover any damage that results from it.

What’s the deadline for making a claim?

If there is no specific deadline in the policy, you usually have until the legal statute of limitations expires after the insurance company denies your claim.

How is coverage denied?

Coverage can be denied explicitly, when the insurance company sends a letter saying they won’t cover the claim, or implicitly, if they simply ignore the claim.

What is the duty to cooperate?

The duty to cooperate means you must help the insurance company by giving them the information they need to investigate and handle your claim.

How does estoppel work?

Estoppel stops someone from going back on their word if the other person has relied on that promise. In insurance, it might prevent an insurer from denying coverage if they’ve acted as if they would cover the claim.

What is first-party insurance?

First-party insurance covers losses to the policyholder’s property. This is different from third-party insurance, which covers claims made by other people against the policyholder.

What is an ‘occurrence policy’?

An occurrence policy covers incidents that happen during the policy period, even if the claim is made after the policy has ended, as long as the insurer is notified in a reasonable time.