Statute Of Limitations — Insurance Claims Definition
General
A law limiting the time within which a lawsuit must be filed after a claim accrues.
Each state sets different periods for contract claims, tort claims, and UM/UIM actions. The clock may start at loss, discovery, or denial. Contractual limitations in policies may be enforced if reasonable and conspicuous.
Missing the limitations deadline bars suit regardless of claim merit.
Examples
A property owner has two years from denial to sue for breach of contract in State X; filing at month 25 is dismissed.
Common Mistakes
Confusing claim reporting deadlines in the policy with judicial statutes of limitation. Assuming verbal extensions without written tolling.
