Limitation of Suit: A Call For Equitable Tolling
Insurance Law Section
Winter.2006
Property insurance policies that cover fire losses generally include a provision barring the insured from maintaining a lawsuit for insurance coverage unless the site is brought within a certain period of time after the date of loss. Thus, in most cases involving a covered loss, a policyholder must complete its investigation, quantify its loss, submit proof of loss to its insurer and file a lawsuit (assuming that the resulting claim is denied) within 12 or 24 months of the loss to avoid the possibility of losing its right to recover under the policy.
