How Long Does an Insurance Company Have to Settle a Homeowners Insurance Claim in Michigan?
After suffering major damage from a fire, storm, or flood, most Michigan homeowners assume their insurer will act quickly. But too often, claimants are left waiting—while insurers delay, underpay, or ignore their responsibilities.
At Fabian, Sklar, King & Liss, we know how to hold insurance companies accountable when they stall or mishandle claims. If you’re wondering how long your insurer can take to pay, here’s what Michigan law really requires—and how our firm can help if they fail to comply.
Michigan Law Requires Prompt Claim Handling—But Insurers Don’t Always Cooperate
Michigan’s Uniform Trade Practices Act mandates that insurers investigate and settle claims promptly and fairly. While there’s no fixed deadline for every step, insurers must acknowledge claims, investigate without delay, and issue payment once a loss is established.
When they don’t, your rights kick in—especially when delays are unjustified or excessive. Learn more about why insurance companies drag out settlements and what legal tools we use to stop them.
What Michigan Homeowners Should Expect from Their Insurance Company
Insurers in Michigan must:
• Acknowledge your claim promptly
• Conduct a fair, timely investigation
• Keep you informed throughout the process
• Make a prompt, fair settlement offer
• Pay the agreed amount without undue delay
When this doesn’t happen, you may be entitled to financial penalties and legal remedies.
What If Your Insurance Company Delays Payment?
If your insurer delays payment without justification, Michigan law provides recourse. Under Michigan Compiled Laws Section 500.2006, you may be entitled to 12% annual penalty interest on top of the settlement amount.
Our team uses this statute strategically when insurers drag their feet. We’ve helped clients recover significantly more than their initial claim by leveraging these legal protections.
Recognizing the Tactics Insurers Use to Delay Claims
Insurance companies don’t just delay—they stall intentionally. Common tactics include:
• Repeated requests for the same documents
• Rotating adjusters to reset the process
• Lowball offers designed to wear you down
• Unreasonably long investigations or silence
These aren’t minor delays—they’re often legal violations. If you’re experiencing these signs, here’s what to do when an insurer refuses to settle.
Why Legal Action May Be Necessary
At Fabian, Sklar, King & Liss, we cut through delay tactics and compel insurers to pay fairly and on time. Our attorneys have decades of experience litigating these cases and enforcing Michigan’s penalty interest statute in real-world claims.
Call Michigan’s Leading Property Insurance Attorneys Today
If your homeowners insurance claim has stalled or you’re getting nowhere with your insurer, don’t wait. The earlier we get involved, the faster we can recover what you’re owed.
Contact Fabian, Sklar, King & Liss today for a free consultation. Let Michigan’s top insurance attorneys enforce your rights and end the delay.