4 circumstances throughout the final couple of weeks display that almost all policyholders suing Nationwide Flood will doubtless lose on technical proof of loss or statute of limitations causes slightly than on the substance of the dispute. In Glass v. American Strategic, 1 the owners came upon that the one-year clock to sue began with the very first partial denial letter they obtained, not when the insurer despatched a later and extra formal rejection. The courtroom had no endurance for the argument that subsequent letters by some means reset the deadline. The outcome? Time-barred and dismissed.
The Ghias, of their case in opposition to American Bankers, didn’t fare any higher. They argued that the denial letter was not based mostly on a sworn proof of loss and that FEMA bulletins about Hurricane Ian claims by some means required a distinct final result. The courtroom disagreed, declaring {that a} denial is a denial, no matter whether or not a proof of loss was within the file, and the bulletins relating to the adjusting process don’t save a lawsuit filed too late. 2 They, too, have been proven the door on statute of limitations grounds.
The Lees tried a distinct tack, submitting a proof of loss for extra damages greater than a 12 months after Hurricane Ian. Their insurer mentioned it was too late, and the courtroom agreed. 3 Efforts to assert waiver or estoppel in opposition to the government-backed Nationwide Flood Program ran right into a wall of precedent. Courts have persistently held that until FEMA itself points a written waiver, the foundations are ironclad. The Lees’ case drowned underneath the load of strict compliance.
Lastly, the Agostinos managed to maintain their case alive a little bit longer in opposition to Monarch Nationwide. The insurer argued the case was late, however it relied on an affidavit outdoors the pleadings on the movement to dismiss stage. The courtroom refused to go alongside, saying it couldn’t determine timeliness from the face of the criticism alone. Nonetheless, the Agostinos misplaced their requests for legal professional’s charges and a jury trial as a result of NFIP circumstances don’t enable both. 4 In different phrases, they’re nonetheless within the sport, however the playbook is restricted. My view is that the Agostinos’ declare has an enormous gap that may sink their potential to gather something.
Taken collectively, these circumstances present that the flood in courtroom is usually extra treacherous than the flood in your house. Policyholders and their advocates want to grasp that the NFIP is a creature of federal regulation, not widespread sense or fairness. Miss a deadline, and the courts won’t forgive you. File late proof of loss paperwork, and you might be sunk. Count on the standard cures of legal professional’s charges or jury sympathy, and you can be sorely upset.
The lesson is easy on the subject of Nationwide Flood claims. Deal with each denial letter as if it have been a ticking clock, and get your proof of loss correctly accomplished and filed on time, as a result of the water within the courtroom rises even sooner than the storm surge.
Thought For The Day
“The one factor worse than being on a sinking ship is being on one with kin.”
—P.G. Wodehouse
1 Glass v. American Strategic Ins. Corp., No. 2:25-cv-443, 2025 WL 2676077 (M.D. Fla. Sept. 18, 2025).
2 Ghai v. American Bankers Ins. Co. of Florida, No. 2:24-cv-567, 2025 WL 2676373 (M.D. Fla. Sept. 18, 2025).
3 Lee v. Wright Nationwide Flood Ins. Co., No. 2:24-cv-216, 2025 WL Sept. 18, 2025).
4 Agostino v. Monarch Nationwide Ins. Co., 2:24-cv-957, 2025 WL 2770856 (M.D. Fla. Sept. 26, 2025).
