Key Takeaways
- Ohio requires prompt acknowledgment of claims within specified timeframes
- Insurers must complete investigation and accept or deny claims promptly
- Ohio has specific regulations regarding public adjusters
- Appraisal provisions are standard in property policies for dispute resolution
- Bad faith claims handling can result in penalties and lawsuits
Last updated: January 2026
Ohio Property Claims Handling
Ohio has specific requirements for handling property insurance claims that producers and adjusters must understand.
Claims Handling Requirements
Timeline Requirements
| Action | Timeframe |
|---|---|
| Acknowledge Claim | Within 15 days of receipt |
| Begin Investigation | Promptly upon receipt |
| Request Information | Within 15 days if needed |
| Accept or Deny | Within reasonable time |
| Pay Claim | Promptly after settlement |
Claims Investigation Standards
Insurers must:
- Investigate claims thoroughly and promptly
- Document all investigation activities
- Communicate regularly with the insured
- Not deny claims without reasonable basis
- Provide explanation for claim denials
Public Adjusters
Ohio regulates public adjusters who represent insureds in property claims:
Public Adjuster Requirements
| Requirement | Details |
|---|---|
| License Required | Must be licensed by ODI |
| Exam | Must pass state exam |
| Bond | Surety bond required |
| Fee Limits | Contract must disclose fees |
| Disclosure | Must disclose they represent insured |
Public Adjuster Restrictions
- Cannot solicit within 48 hours of loss (disaster)
- Must provide written contract
- Cannot be compensated by insurer
- Cannot practice law
- Must act in insured's best interest
Appraisal Process
Ohio property policies include appraisal provisions for disputed claims:
How Appraisal Works
- Demand: Either party can demand appraisal
- Appraisers: Each party selects an appraiser
- Umpire: Appraisers select an impartial umpire
- Determination: Agreement of 2 determines loss amount
- Binding: Decision is binding on both parties
Appraisal vs. Dispute Resolution
| Appraisal | Coverage Disputes |
|---|---|
| Determines amount of loss | Determines if loss is covered |
| Binding decision | May require litigation |
| Faster resolution | May involve courts |
| Each party pays own appraiser | Litigation costs |
Bad Faith Claims Handling
Ohio recognizes bad faith claims against insurers:
What Constitutes Bad Faith
- Failing to investigate promptly
- Denying claims without reasonable basis
- Failing to communicate claim decisions
- Delaying payment unreasonably
- Misrepresenting policy provisions
- Offering substantially less than reasonable value
Consequences of Bad Faith
| Consequence | Description |
|---|---|
| Compensatory Damages | Actual damages suffered |
| Consequential Damages | Related losses |
| Attorney's Fees | In some cases |
| Regulatory Action | ODI investigation |
| Unfair Practice Finding | License discipline possible |
Catastrophe Claims
During catastrophes, Ohio may implement special procedures:
- Extended filing deadlines
- Temporary adjuster licensing
- Consumer protection enforcement
- Emergency regulations
Test Your Knowledge
Within how many days must an Ohio insurer acknowledge receipt of a property claim?
A
B
C
D
Test Your Knowledge
In Ohio, public adjusters are prohibited from soliciting business within how many hours of a loss during a disaster?
A
B
C
D