First-Party Property Damage Demand Letter - Georgia

FIRST-PARTY PROPERTY DAMAGE DEMAND LETTER

State of Georgia

[LAW FIRM LETTERHEAD]

SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
ADMISSIBILITY SUBJECT TO O.C.G.A. § 24-4-408 AND FED. R. EVID. 408, WHERE APPLICABLE

VIA STATUTORY OVERNIGHT DELIVERY AND CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [________________________________]

Date: [__/__/____]

[INSURANCE_COMPANY_NAME]
[________________________________]
[________________________________]
[CITY], [STATE] [ZIP]

Attention: [________________________________], Property Claims Adjuster
Re: FIRST-PARTY PROPERTY DAMAGE DEMAND — O.C.G.A. § 33-4-6 60-DAY DEMAND
Insured: [________________________________]
Property Address: [________________________________], [________________________________] County, Georgia [____]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
Cause of Loss: [________________________________]
Coverage Limits: $[________________________________]
Response Deadline: [__/__/____] (60 days from receipt)

Dear [________________________________]:

I. INTRODUCTION — THIS IS THE STATUTORY 60-DAY DEMAND UNDER O.C.G.A. § 33-4-6

This firm represents [________________________________] ("our client" or "the Insured") in connection with the above-referenced first-party property-insurance claim arising under Georgia law.

This letter is a demand for payment under O.C.G.A. § 33-4-6 for the statutory bad-faith penalty and attorney's fees. The sixty (60)-day period runs after demand. If [INSURANCE_COMPANY_NAME] (the "Carrier") refuses to pay the covered loss within that period, and such refusal is found to be in bad faith, the Carrier will be liable for:

1. The full loss (policy benefits wrongfully withheld);
2. A statutory penalty of not more than fifty percent (50%) of the liability for the loss, or $5,000, whichever is greater;
3. All reasonable attorney's fees incurred in the prosecution of the action.

See O.C.G.A. § 33-4-6(a). Within twenty (20) days of filing suit, our office will mail a copy of this demand and the complaint to the Commissioner of Insurance as required by O.C.G.A. § 33-4-6(b).

II. GOVERNING GEORGIA LAW

A. Issued Policy and Suit Deadline

Review the issued policy and endorsements for the coverage, proof-of-loss, appraisal, and suit-limitation terms that apply to this loss. Record any suit deadline stated in the policy and determine its effect on this claim: [________________________________].

B. Bad Faith — O.C.G.A. § 33-4-6

The Georgia bad-faith statute provides a private cause of action against a first-party property insurer that "refuses to pay" a covered loss in bad faith after a 60-day statutory demand. The standard articulated in McCall v. Allstate Ins. Co., 251 Ga. 869, 871 (1984), is whether the refusal is "frivolous and unfounded." A reasonable ground to contest the claim can defeat statutory penalties; the ground is not limited to a disputed material fact. Evaluate the policy, coverage position, and claim record. Javits v. State Farm Fire & Casualty Co., No. 1:13-cv-487-WSD (N.D. Ga. Aug. 26, 2014).

C. Unfair Claims Settlement Practices — O.C.G.A. §§ 33-6-30 to 33-6-37

Georgia's Unfair Claims Settlement Practices Act does not create a private cause of action. O.C.G.A. § 33-6-37. Conduct enumerated in O.C.G.A. § 33-6-34 may be reported to the Commissioner of Insurance for administrative enforcement.

D. Statute of Limitations

• General rule for simple written contracts: Six (6) years after the claim becomes due and payable under O.C.G.A. § 9-3-24; check the issued policy's suit-limitation term and any coverage-specific rule before setting a filing deadline: [________________________________].
• Tort-Based Property Damage Claims: Four (4) years — O.C.G.A. § 9-3-30

E. Appraisal

If the issued policy contains an appraisal clause, quote its terms here: [POLICY APPRAISAL CLAUSE AND SECTION]. Identify the question submitted for appraisal, any required notice, and the clause's procedure before invoking it.

III. POLICY INFORMATION AND COVERAGE

A. Policy Details

B. Coverage Limits

C. Coverage Trigger

The loss at [________________________________] is covered under the policy's insuring agreement because:

1. The cause of loss — [________________________________] — is a covered peril under the policy.
2. The loss occurred within the policy period (on [__/__/____]).
3. The damaged property is scheduled/covered under the declarations page.
4. No applicable exclusion bars coverage under Georgia contract-construction principles.
5. All policy conditions (notice, mitigation, cooperation, proof of loss) have been timely satisfied.

IV. THE LOSS

A. Description of Loss

On [__/__/____] at approximately [__:__] [AM/PM], the insured property at [________________________________] in [________________________________] County, Georgia, sustained significant damage caused by [________________________________].

Notable Georgia events and perils relevant to this claim:

• ☐ Hurricane / tropical storm (coastal Georgia — Chatham, Bryan, Liberty, McIntosh, Glynn, Camden counties)
• ☐ Tornado / severe thunderstorm (North Georgia / Metro Atlanta)
• ☐ Ice storm or winter weather event
• ☐ Wildfire (South Georgia / Okefenokee region)
• ☐ Hail storm (I-75 / I-85 corridor)
• ☐ Water damage (plumbing, roof leak, HVAC, appliance)
• ☐ Fire / lightning
• ☐ Theft / vandalism
• ☐ Tree fall / fallen object
• ☐ Other: [________________________________]

B. Mitigation

Pursuant to the policy's "Duties After Loss" provision and Georgia common law, our client took prompt action to mitigate further damage:

C. Notice and Proof of Loss

Notice of loss was provided to [INSURANCE_COMPANY_NAME] on [__/__/____]. A sworn proof of loss was submitted on [__/__/____] (or will be submitted upon request). All requested recorded statements, examinations under oath, and document productions have been timely completed.

V. CLAIM HISTORY

The Carrier's Position

[INSURANCE_COMPANY_NAME] has [denied / underpaid / delayed / improperly reserved rights on] the claim on the following grounds: [________________________________].

This position is unreasonable under Georgia law and violates the Carrier's duty of good faith because:

• [________________________________]
• [________________________________]
• [________________________________]

VI. DAMAGES

A. Dwelling (Coverage A) — Full Scope of Repair

The scope of covered damage to the dwelling is documented in the contractor estimate prepared by [________________________________], a Georgia-licensed general contractor (License No. [________________________________] issued by the State Licensing Board for Residential and General Contractors under O.C.G.A. § 43-41-1 et seq.).

B. Other Structures (Coverage B)

C. Personal Property (Coverage C)

Personal property inventory prepared using room-by-room replacement-cost valuation per policy terms:

D. Additional Living Expense / Loss of Use (Coverage D)

Our client has been displaced from the property since [__/__/____]:

E. Claim Summary and Balance Due

VII. OVERHEAD AND PROFIT — GEORGIA STANDARD

The estimate includes general-contractor overhead and profit because the documented scope reasonably requires general-contractor coordination. The applicable percentage and recoverability must be supported by the Policy, the actual repair scope, and competent estimating evidence; there is no automatic Georgia "three-trade" rule established by State Farm v. Mabry, which is an automobile diminished-value case.

VIII. APPRAISAL DEMAND (CONDITIONAL)

Pursuant to the appraisal clause in [POLICY SECTION], we request appraisal of [DESCRIBE THE DISPUTED LOSS QUESTION]. This request follows the clause's notice and selection procedure; any issues outside its stated scope are reserved.

Insured's Appointed Appraiser: [________________________________]
Qualifications: [________________________________]

The Carrier should appoint its appraiser by [POLICY DEADLINE]. If an umpire is needed, the parties will follow [QUOTE THE POLICY UMPIRE-SELECTION PROCEDURE].

IX. STATUTORY VIOLATIONS

A. Claim Handling Facts for Regulatory Review — O.C.G.A. § 33-6-34

The following claim-handling facts, if supported by the record, may warrant regulatory review under O.C.G.A. § 33-6-34. Identify the applicable practice and supporting evidence:

• ☐ § 33-6-34(1) — Knowingly misrepresenting pertinent facts or policy provisions
• ☐ § 33-6-34(2) — Failing to acknowledge and act reasonably promptly upon claim communications
• ☐ § 33-6-34(3) — Failing to adopt reasonable standards for prompt investigation
• ☐ § 33-6-34(4) — Not attempting in good faith to effectuate prompt, fair, and equitable settlements once liability is reasonably clear
• ☐ § 33-6-34(5) — Compelling the insured to sue for policy amounts by offering substantially less than the amount ultimately recovered
• ☐ § 33-6-34(8) — On the insured's written request, paying a claim without stating the coverage under which payment was made
• ☐ § 33-6-34(10) — On the insured's written request, failing to promptly give a reasonable and accurate explanation for a denial or compromise offer

B. Bad Faith Under O.C.G.A. § 33-4-6

The Carrier's refusal to pay satisfies the "frivolous and unfounded" standard of McCall v. Allstate because [________________________________].

X. FORMAL DEMAND

We hereby demand payment of $[____] in full and final satisfaction of this first-party property claim, payable to "[________________________________] and [CLIENT_NAME]," and delivered to the undersigned within sixty (60) days of receipt of this letter.

If not paid within sixty (60) days and bad faith is found, the Carrier will additionally be liable for a penalty of up to 50% of the loss (or $5,000, whichever is greater) and all reasonable attorney's fees under O.C.G.A. § 33-4-6.

XI. DOCUMENT PRESERVATION NOTICE

This letter serves as formal notice to preserve all claim-related documents and electronically stored information, including:

• The complete claim file, including drafts and superseded versions
• All reserves and reserve-change history
• Adjuster activity logs, diary entries, and supervisor notes
• All internal and external communications (email, text, recorded calls)
• Photographs, drone footage, inspection videos
• Engineer and contractor reports
• Xactimate/Symbility estimates and scope comparisons
• Training materials and claim handling guidelines
• Quality-assurance audits and "round tables" / supervisor sign-offs

XII. CONSEQUENCES OF NON-PAYMENT

If [INSURANCE_COMPANY_NAME] fails to tender the full amount owed within sixty (60) days:

1. Suit will be filed in the State or Superior Court of [________________________________] County, Georgia, asserting breach of contract, bad faith under O.C.G.A. § 33-4-6, and attorney's fees.
2. A copy of the complaint and this demand will be mailed to the Commissioner of Insurance within twenty (20) days of filing as required by O.C.G.A. § 33-4-6(b).
3. A regulatory complaint will be filed with the Office of the Commissioner of Insurance and Safety Fire, through its current complaint portal, requesting review of the documented claim-handling facts under O.C.G.A. § 33-6-34.
4. Appraisal will be invoked if not already.

XIII. CONCLUSION

The Carrier sold our client a policy promising indemnity for covered losses. That loss has occurred. Coverage is clear, scope is documented, and Georgia law requires payment. The Carrier has sixty (60) days to do the right thing.

Respectfully submitted,

[LAW_FIRM_NAME]

By: _______________________________
[ATTORNEY_NAME]
Georgia Bar No. [________________________________]
[________________________________]
[CITY], GA [____]
Telephone: [________________________________]
Email: [________________________________]

Counsel for [CLIENT_NAME]

ENCLOSURES:
☐ Policy declarations page and relevant endorsements
☐ Contractor scope and Xactimate / Symbility estimate
☐ Photographs and videos of damage
☐ Room-by-room personal property inventory
☐ Receipts for ALE and mitigation expenses
☐ Sworn proof of loss
☐ Public adjuster or engineer report (if applicable)
☐ Certificate of insurance / mortgagee information

CC:

• [CLIENT_NAME]
• [MORTGAGEE_NAME]
• Office of the Commissioner of Insurance and Safety Fire (upon filing suit)

GEORGIA PROPERTY INSURANCE QUICK REFERENCE

SOURCES AND REFERENCES

• O.C.G.A. § 33-4-6 (Bad Faith): https://unicourt.github.io/cic-code-ga/transforms/ga/ocga/r86/gov.ga.ocga.title.33.html#t33c04s33-4-6
• O.C.G.A. § 33-4-7 (Third-Party MV Property Damage Bad Faith): https://law.justia.com/codes/georgia/title-33/chapter-4/section-33-4-7/
• O.C.G.A. § 33-6-34 (Unfair Claims Practices): https://unicourt.github.io/cic-code-ga/transforms/ga/ocga/r86/gov.ga.ocga.title.33.html#t33c06a02s33-6-34
• O.C.G.A. § 9-3-24 (General limitation on simple written contracts): https://unicourt.github.io/cic-code-ga/transforms/ga/ocga/r86/gov.ga.ocga.title.09.html#t09c03a02s9-3-24
• Office of the Commissioner of Insurance and Safety Fire: https://oci.georgia.gov/
• Georgia Claims Handling Practices Overview: https://www.robinskaplan.com/newsroom/insights/claims-handling-practices-georgia