Understanding Georgia’s Statute of Limitations for First-Party Property Insurance Claims
By: Remington Huggins, Esq.
Whether you’re an insured, or you’re assisting insureds in Georgia it's crucial to understand the deadline to file a lawsuit (statute of limitations) because failure to file a lawsuit in the time provided by the insurance policy is a sure-fire way to significantly impact the insureds ability to recover insurance proceeds under the policy.
In Georgia, the time frame for an insured to file a lawsuit against their property insurance carrier is governed by the language in the policy and is usually only one or two years from the date of loss. This deadline is typically found in the “Section I – Conditions” section of the policy and is often labeled as "Suit Against Us" or "Legal Action Against Us."
It’s imperative to meticulously review a certified copy of the insurance policy to determine the exact deadline. If you don’t already have a certified copy of the insurance policy, you’ll need to get one. A certified policy can be obtained from the insurance agent or claims adjuster. Many insurance carriers in Georgia are moving to one-year deadlines; making it very important to check the policy to ensure the claim can still be pursued.
When reviewing a policy, you may find that endorsements extend the lawsuit deadlines from one to two years, but these endorsements can be deceiving. Many endorsements which extend lawsuit deadlines appear to extend the deadlines for all types of losses, but that’s not always the case. Further, some endorsements in Georgia shorten the time period in which an insured can file a lawsuit. It’s best to assume the shortest deadline in the policy is the deadline that matters.
Timely Legal Consultation and Bad Faith Claims
If a dispute arises and an insured needs to pursue legal action, it's strongly recommended that they consult with an attorney at least three to four months before the "Suit Against Us" or "Legal Action Against Us" period expires. This time frame allows the attorney sufficient time to:
Prepare and send a formal 60-day demand letter to the insurance carrier which is necessary to pursue a bad faith claim under O.C.G.A. § 33-4-6.
Draft and file the lawsuit with the court.
Serve the lawsuit on the insurance carrier's registered agent.
Impact on Hurricane Helene Claims
For insureds with Hurricane Helene claims and policies containing a one-year (or 12-month) "Suit Against Us" or "Legal Action Against Us" provision, understanding this timeline is critical. In order to preserve an insured’s claim for bad faith damages, a lawyer should get involved 3-4 months before the statute of limitations expires.
The Fire Loss Exception
The language contained in the insurance policy will always control the statute of limitations period with one exception – fire and lightning losses. In Georgia, all fire losses are subject to a two-year suit limitation period, regardless of what the policy states because the state adopted the Georgia Standard Fire Policy.
Conclusion
In summary, thoroughly reviewing each insurance policy is crucial to pinpoint the lawsuit filing deadline. Overlooking this deadline can severely jeopardize an insured's ability to recover funds, even if the insurer still owes money.