Glossary
Prompt payment law
State rules that set deadlines for an insurer to acknowledge a property claim, decide it and pay it, often with interest owed on late payments.
Also called: prompt pay statute, prompt payment statute, claim payment deadlines
Prompt payment laws put clocks on insurers. The details differ by state, but the structure is similar: acknowledge the claim and begin investigating within days of notice, accept or deny it after receiving the information needed, and pay within a set period after agreeing. Many states add interest or penalties on late payments.
Florida is a current example. Under Fla. Stat. 627.70131, as of the 2025 statutes, an insurer generally must pay or deny a property claim within 60 days after receiving notice (the 2022 reforms cut it from 90 days), and late payments bear interest from the date of notice. Other states count in business days, start the clock when a completed proof of loss arrives, or put deadlines in regulations rather than statutes.
Two caveats. The clock usually pauses while the insurer waits for documents it has reasonably requested. And the policy has its own payment clause: the standard ISO form promises payment within 60 days after the insurer receives your proof of loss and the amount is agreed or determined by judgment or appraisal. A missed deadline is typically an unfair claims practice to report to the department of insurance, not by itself grounds for a lawsuit. Details for your state are in how long insurers have to pay a home claim.
Last reviewed October 10, 2026