The federal district court agreed that the insurer properly rejected the insured's claim for flood damage after suit was not timely filed. 4922 Mgmt. LLC v. Selective Ins. Co. of the Southeast, 2025 U.S. Dist. LEXIS 21173 (M.D. Fla. Feb. 6, 2025).
The insured's property suffered damage during Hurricane Ian. Selective was a write-your-own program carrier participating in the National Flood Insurance Program. Selective issued to the insured a Standard Flood Insurance Policy.
The insured submitted a claim for damages. On May 16, 2023, Selective sent a letter partially denying the claim. The insured filed suit over one year later. Selective moved to dismiss under 42 U.S.C. 4072, which required a plaintiff to institute an action "within one year after the date of mailing of notice of disallowance or partial disallowance" of the claim. Selective issued its letter on May 16, 2023. The insured filed suit on September 25, 2024, so it was seemingly too late. The insured argued, however, that the letter did not constitute a notice of disallowance or partial disallowance that would trigger the limitation period.
The court disagreed. The May 2023 letter constituted a partial disallowance under section 4072 because in making a partial payment, the letter advised if the insured did not agree with the decision to "deny your claim," the insured should refer to a summary of rights attached to the letter.
The insured further argued that the letter was not a denial because it extended coverage for a portion of the claim. Case law established, however, that the issue of whether the insurer partially accepted an insured's claim had no bearing on the jurisdictional statute of limitations. Since Selective's May 2023 letter partially denied the claim, it triggered the one-year limitations period.
