What to do if your insurance company stops updating you or threatens to close your claim

Disclaimer: This article is educational only and does not constitute legal advice. If you need legal advice about your specific situation, consult a licensed Louisiana attorney.

Detailed answer — practical steps under Louisiana law

If your insurer stops returning calls, refuses to give you meaningful status updates, or threatens to close your claim without resolving it, act quickly and methodically. Louisiana law and the state insurance regulator expect insurers to handle claims fairly and promptly. Below are the steps to protect your rights and preserve remedies.

1. Read your policy and note deadlines

Start by reading your insurance policy carefully. Look for:

• Notice and proof-of-loss deadlines.
• Requirements for documentation and cooperating with the insurer.
• Any time limits for suing the insurer (statute of limitations or contractual suit limitation).

2. Put requests and responses in writing

Whenever possible, communicate in writing. Send a clear, dated letter or email asking for a status update and for a specific timeline to resolve the claim. Keep copies of every letter, email, text, and notes from phone calls (include the date, time, who you spoke with, and what was said).

3. Send a demand for status / proof of action (certified mail)

If repeated informal requests fail, send a written demand by certified mail (return receipt requested). In that letter:

• Briefly summarize the claim and prior communications.
• Request a written status update within a short, reasonable time (for example, 10–14 days).
• If the insurer threatens to close the claim, ask for the specific reason and the exact conditions required to keep it open.

4. Document your mitigation and cooperation

Keep records of what you did to mitigate damages and how you cooperated with the insurer (estimates, invoices, emergency repairs, photos). This helps counter any contention that you failed to cooperate or that the insurer’s threatened closure is justified.

5. Understand possible insurer obligations and unfair practices

Insurers must follow the terms of the policy and state insurance rules. In Louisiana, the Department of Insurance supervises insurers and handles consumer complaints. If an insurer is unresponsive or engages in unfair claim handling, you may file a complaint with the Louisiana Department of Insurance.

For general information from the regulator, see the Louisiana Department of Insurance consumer pages: https://www.ldi.la.gov/. For the texts of insurance laws, consult Louisiana Revised Statutes, Title 22 (Insurance) at the Louisiana Legislature website: https://legis.la.gov/.

6. File a complaint with the Louisiana Department of Insurance

If the insurer does not respond or gives an unreasonable explanation for closing your claim, file a complaint with the Louisiana Department of Insurance (LDI). LDI can investigate claim-handling practices, require explanations, and sometimes facilitate resolution. Keep a copy of your complaint and any LDI case number.

7. Consider sending a demand letter from an attorney

If internal appeals and an LDI complaint do not work, a demand letter from a Louisiana attorney often prompts action. The letter should summarize the claim, show you complied with policy duties, demand payment or specific action, and state that you may pursue legal remedies (including statutory penalties) if the claim remains unresolved.

8. Know potential legal remedies

Depending on the facts, you may have legal claims if the insurer unreasonably delays, denies, or threatens to close your claim in bad faith. Louisiana law provides causes of action for improper claim handling and recognizes remedies such as claim payment, penalty interest, and recovery of attorney fees in certain cases. Exact remedies depend on the contract, the insurer’s conduct, and the applicable statutes and case law, so consult a Louisiana attorney for a case-specific assessment.

9. Preserve your right to sue by noting limitation periods

Insurance policies and Louisiana law set time limits for filing lawsuits. Even if you are working the problem with the insurer or LDI, watch the deadlines. If you plan to sue, an attorney can often file a protective action so you do not lose the right to sue while pursuing administrative remedies.

What to say in communications (sample content)

When you write to the insurer, be brief and focused. Example points to include:

• Claim number, date of loss, and insured name.
• Short summary of what happened and what you already submitted.
• Clear request: “Please provide a written status update and the specific reason and policy basis if you intend to close this claim.”
• State a reasonable deadline for reply (e.g., 10 business days).
• Attach proof of prior submissions (estimates, receipts, photos).

When to hire an attorney

Talk to a Louisiana attorney if:

• The insurer still refuses to communicate after written requests and an LDI complaint.
• The insurer threatens to close your claim without justification or without giving you time to produce information required by the policy.
• There is a serious coverage dispute or substantial unpaid loss (large repair bills, total loss, business interruption).
• You receive a denial or underpayment that you believe is wrongful.

An attorney can evaluate whether the insurer’s conduct rises to bad faith or unfair claim settlement practices and advise on filing suit, seeking damages, penalties, and attorney fees when appropriate.

Helpful hints

• Always keep a dated paper or digital file of every communication, photo, invoice, and repair estimate.
• Send important letters by certified mail with return receipt so you have proof of delivery.
• Do not accept a check or settlement release until you fully understand whether it resolves all claims (get an attorney to review releases for large or unclear claims).
• If the insurer asks for additional documentation, provide it promptly but keep copies and document when you sent it.
• Use the Louisiana Department of Insurance as a resource: https://www.ldi.la.gov/.
• If you face an imminent deadline, consult an attorney even if only for a limited scope (a single letter or deadline extension).

Remember: acting quickly, keeping careful records, and using the regulator and legal counsel when needed will give you the best chance to resolve a stalled or threatened claim under Louisiana law.