Client: Safeco Insurance Company of America
Court: Superior Court of New Jersey, Burlington County
Brief Attorney: Voris M. Tejada, Jr.
**Results may vary depending on your particular facts and legal circumstances**
The plaintiffs sued Safeco, their homeowners’ insurance carrier, for breach of contract after Safeco partially denied plaintiffs’ claim for roof damage allegedly resulting from a hailstorm.
Safeco filed a Motion for Summary Judgment seeking to dismiss the suit based on plaintiffs’ failure to comply with the limitations provision contained in their insurance policy. While the statute of limitations for breach of contract claims is 6 years, insurance policies commonly contain provisions which require the insured to bring suit within one year of the date of loss. Under related case law, this 1-year period is “tolled,” or paused, between the time the insured reports the claim and the time the insurer issues its coverage or denial decision.
Here, the plaintiffs did not report the loss to Safeco until 306 days later. Thereafter, Safeco spent 40 days investigating the claim before issuing its partial denial letter. Critically, the plaintiffs did not file suit until 432 days after the loss. As such, even after accounting for the 40 days Safeco spent investigating the claim, plaintiffs still waited 392 days to file suit, exceeding the 1-year limitations period set forth in the policy. For these reasons, the Court granted Safeco’s Motion for Summary Judgment and denied plaintiffs’ subsequent Motion for Reconsideration.
