Insurance Claim Deadline For Hail Damage Looms

INDIANAPOLIS -- State regulators said Indiana homeowners who had hail damage in a severe thunderstorm nearly a year ago are facing a possible deadline in their insurance policies.

Depending upon the insurance company and policy, many homeowners may have until midnight Saturday to file a claim after hail damage from the April 14, 2006, storm, Call 6's Rafael Sanchez reported.

Policyholders were urged to check out a section in their policies concerning lawsuits against the company. Many insurance companies give one year to file a lawsuit if a dispute is not settled.

Lawmakers are considering a bill that would allow people to file suit within two years if a claim isn't settled. If the bill passes, it would go into effect July 1.

Under the measure, insurance companies would have to inform policyholders in writing when there is a change in coverage.

State regulators said they believe the right-to-sue extension will be a win-win for consumers, but the insurance lobby is opposed to the changes and said rates could increase if the measure passes.

State Farm customers have been offered nonbinding arbitration to settle disputes, which the company was not obligated to offer.

State Farm said that as long as a claim involving the April 14 storm has been filed, arbitration can still be requested.

State Farm has a hot line: 1-866-210-1785.