First-Party Property Damage Demand Letter - New Hampshire

FIRST-PARTY PROPERTY DAMAGE DEMAND LETTER

State of New Hampshire

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR RESOLUTION PURPOSES ONLY
PROTECTED UNDER N.H. R. EVID. 408 AND F.R.E. 408

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

Date: [__/__/____]

[INSURANCE COMPANY NAME]
[________________________________]
[________________________________]
[________________________________], [____] [________]

Attention: [________________________________], [________________________________]
Re: FORMAL DEMAND FOR PAYMENT — PROPERTY DAMAGE CLAIM — NEW HAMPSHIRE
Insured: [________________________________]
Property Address: [________________________________], NH [________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
Type of Loss: [________________________________]
Applicable Coverage Limits: $[________________________________]
Response Deadline: [__/__/____] at 5:00 p.m. EST

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client") in connection with the above-referenced first-party property damage insurance claim governed by New Hampshire law. This letter constitutes a formal demand for payment of all policy benefits owed for covered losses sustained at [________________________________], New Hampshire.

Our client [________________________________] has diligently reported this loss, cooperated fully with [CARRIER SHORT NAME]'s investigation, and complied with all policy conditions. Despite this cooperation, [CARRIER SHORT NAME] has [________________________________]. This demand is issued to provide [CARRIER SHORT NAME] a final opportunity to fulfill its contractual and statutory obligations under New Hampshire law before litigation is commenced.

II. NEW HAMPSHIRE PROPERTY INSURANCE LAW — KEY PROVISIONS

A. The NH Standard Fire Policy — RSA 407:1 et seq.

New Hampshire law prescribes the mandatory standard fire insurance policy form under RSA 407:1 et seq. No fire insurance policy covering property in New Hampshire may be issued unless it conforms to the statutory form set forth in RSA Chapter 407. This means the policy's core terms — including the insuring agreement, conditions, and exclusions — must comply with the statutory form. Any policy provision that is less favorable to the insured than the statutory standard is unenforceable to that extent.

RSA 407:16 addresses judgment provisions and the enforcement of fire insurance policy obligations. Policies covering real property located in New Hampshire are directly subject to this standard.

B. Implied Duty of Good Faith and Fair Dealing

Every New Hampshire insurance contract contains an implied covenant of good faith and fair dealing. Lawton v. Great Southwest Fire Ins. Co., 392 A.2d 576 (N.H. 1978). This duty requires [CARRIER SHORT NAME] to:

• Conduct a prompt, thorough, and objective investigation of this loss
• Evaluate the claim fairly and in our client's interest
• Pay all amounts reasonably owed without compelling litigation
• Communicate honestly and transparently regarding coverage positions

Note on Bad Faith Tort — New Hampshire: Unlike some states that permit independent tort claims for first-party bad faith, New Hampshire does not recognize a separate tort cause of action for an insurer's bad-faith refusal to pay a first-party claim. Lawton v. Great Southwest Fire Ins. Co., 392 A.2d 576 (N.H. 1978). Our client's remedy is contract-based: breach of the insurance contract and breach of the implied covenant of good faith and fair dealing, with all resulting consequential damages. See also RSA 417:4 and RSA 417:19 (statutory remedies through NHID process).

C. Unfair Claims Settlement Practices — RSA 417:4

RSA 417:4 prohibits a specific list of unfair claims settlement practices. The New Hampshire Insurance Department (NHID) enforces this statute. Upon a finding of violation by the Insurance Commissioner, affected policyholders may bring a private action under RSA 417:19.

D. No Punitive Damages in New Hampshire

New Hampshire broadly prohibits punitive damages. RSA 507-D:1 provides: "No punitive damages shall be awarded in any action, unless otherwise provided by statute." This prohibition applies to all civil actions including insurance disputes. There is no statutory exception for insurance bad faith. Our demand is therefore limited to actual damages, consequential damages, and applicable interest under RSA 336:1. This limitation does not diminish [CARRIER SHORT NAME]'s contractual obligations — it simply reflects New Hampshire's distinctive public policy.

E. Interest on Unpaid Amounts — RSA 336:1

New Hampshire does not maintain a fixed statutory interest rate for general business obligations. Under RSA 336:1(II), the annual simple interest rate on judgments (including prejudgment interest) equals the 26-week U.S. Treasury bill discount rate plus 2 percentage points, set annually by the State Treasurer. The current rate effective January 1, [____] is [____]%. All amounts wrongfully withheld by [CARRIER SHORT NAME] will accrue interest at this rate from the date of this demand through payment or judgment.

F. Statute of Limitations — RSA 508:4

Contract and tort claims arising from this insurance dispute must be brought within three (3) years under RSA 508:4. The limitations period on our client's claims expires on approximately [__/__/____]. We will file suit before that date if this matter is not resolved.

G. Appraisal

New Hampshire has no mandatory statutory appraisal process for property insurance disputes (unlike some states). The appraisal process, if available, is governed entirely by the policy terms. If this policy contains an appraisal clause, we reserve the right to invoke it as set forth in Section VIII below.

III. POLICY INFORMATION AND COVERAGE

A. Policy Details

B. Applicable Coverage and Limits

C. Premium Payment Status

Our client's premium is ☐ current through [__/__/____] / ☐ [________________________________]. No policy defense based on non-payment of premium is available.

D. Coverage Analysis

This loss falls squarely within the policy's coverage because:

1. The peril of [________________________________] is a covered cause of loss under the policy
2. The damage occurred on [__/__/____], within the policy period [__/__/____] to [__/__/____]
3. The damaged property is covered property under the policy
4. No policy exclusion applies to this loss: [________________________________]
5. Our client has satisfied all policy conditions, including:
   - Timely notice of loss (given [__/__/____])
   - Cooperation with investigation
   - Completion of proof of loss (submitted [__/__/____])
   - Protection of property from further loss (mitigation)
   - ☐ Examination under oath (completed [__/__/____])

IV. THE LOSS EVENT

A. Description of Loss

On [__/__/____], at approximately [____] [a.m. / p.m.], the insured property at [________________________________], New Hampshire sustained significant damage due to:

☐ Fire (☐ accidental / ☐ electrical / ☐ HVAC / ☐ kitchen / ☐ other: [________________])
☐ Water damage (☐ burst pipe / ☐ appliance failure / ☐ ice dam / ☐ roof leak / ☐ storm)
☐ Windstorm / hail
☐ Lightning strike
☐ Winter storm / ice / snow load
☐ Theft / vandalism
☐ Vehicle impact
☐ Collapse
☐ Other: [________________________________]

New Hampshire Winter Loss Note: Ice dams are a frequently disputed cause of loss in New Hampshire. Damage from ice dams (water intrusion caused by ice buildup at roof eaves during the NH winter) is covered under most NH homeowners policies as water damage from a sudden and accidental discharge, absent an express ice-dam exclusion. If ice dam damage is involved here, [CARRIER SHORT NAME] bears the burden of demonstrating that a specific exclusion applies.

B. Detailed Loss Narrative

[________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________]

C. Cause and Origin Investigation

☐ [CARRIER SHORT NAME]'s adjuster inspected the property on [__/__/____].
☐ [CARRIER SHORT NAME] retained cause-and-origin expert [________________________________] who issued a report dated [__/__/____].
☐ Our client retained independent cause-and-origin expert [________________________________] who concluded [________________________________].
☐ NH State Fire Marshal's Office / [________________________________] Fire Department investigated and issued report No. [________________________________] dated [__/__/____].

D. Mitigation Efforts

Under the policy and New Hampshire law, our client took immediate steps to mitigate further damage:

V. CLAIM HISTORY AND INSURER'S CONDUCT

A. Claim Timeline

B. [CARRIER SHORT NAME]'s Position and Our Client's Response

[CARRIER SHORT NAME] has [________________________________].

This position is unreasonable under New Hampshire law because [________________________________
________________________________________________________________________________________________].

VI. DAMAGES AND CLAIMED AMOUNTS

A. Dwelling / Structure Damage (Coverage A)

Our independent licensed contractor / public adjuster, [________________________________], prepared a written estimate dated [__/__/____]:

B. Ordinance or Law Coverage

New Hampshire's building codes require that repairs or reconstruction comply with current code. Where code-required upgrades increase the cost of repair above the pre-loss condition cost, our client is entitled to Ordinance or Law coverage (if purchased):

C. Other Structures (Coverage B)

D. Personal Property (Coverage C)

Personal property inventory attached as Exhibit [____].

E. Additional Living Expenses / Loss of Use (Coverage D)

Our client was displaced from the insured premises from [__/__/____] through [__/__/____] and incurred the following additional living expenses:

F. Overhead and Profit

Our client is entitled to general contractor overhead and profit (O&P) because the scope and complexity of repairs requires coordination of multiple trades and engagement of a general contractor. The industry standard is 10% overhead and 10% profit. [CARRIER SHORT NAME]'s failure to include O&P is contrary to industry standards and NH law where a GC is reasonably necessary.

O&P Amount: $[____________]

G. Mitigation Costs

As noted in Section IV.D above, our client incurred $[____________] in mitigation costs, all of which are recoverable under the policy.

H. Complete Claim Summary

VII. APPRAISAL DEMAND (IF APPLICABLE)

A. Policy Appraisal Provision

As noted above, New Hampshire has no mandatory statutory appraisal process. However, if this policy contains an appraisal provision — which most standard NH homeowners policies do, tracking the language of the NH Standard Fire Policy under RSA 407 — we hereby invoke that provision due to [CARRIER SHORT NAME]'s failure to fairly evaluate this claim.

The policy appraisal clause provides: "[________________________________]."

B. Our Appraiser

We appoint [________________________________] of [________________________________] as our client's independent appraiser. Please identify [CARRIER SHORT NAME]'s appraiser within [____] days.

C. Scope of Appraisal

The following items are in dispute and submitted to appraisal:

☐ Amount of loss to dwelling (Coverage A)
☐ Amount of loss to other structures (Coverage B)
☐ Amount of loss to personal property (Coverage C)
☐ Depreciation methodology
☐ Specific line items: [________________________________]

Note: Appraisal resolves only the amount of loss, not coverage questions. All coverage disputes are reserved for litigation.

VIII. STATUTORY VIOLATIONS — RSA 417:4

A. Prohibited Unfair Claims Settlement Practices

[CARRIER SHORT NAME]'s handling of this claim has violated, or is at risk of violating, RSA 417:4, which prohibits the following unfair claims settlement practices:

☐ Knowingly misrepresenting pertinent facts or policy provisions relating to coverages at issue
☐ Failing to acknowledge and act reasonably promptly upon communications with respect to claims
☐ Failing to adopt and implement reasonable standards for the prompt investigation of claims
☐ Refusing to pay claims without conducting a reasonable investigation based on available information
☐ Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear
☐ Compelling insureds to institute litigation to recover amounts due by offering substantially less than the amounts ultimately recovered in actions brought by the insureds
☐ Attempting to settle a claim for less than the amount to which a reasonable person would have believed he or she was entitled
☐ Failing to promptly provide a reasonable explanation for the basis in the policy for denial of a claim or for the offer of a compromise settlement

B. Specific Violations in This Claim

[CARRIER SHORT NAME] has specifically:

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

C. NH Insurance Department Complaint Process

Under RSA 417:19, a private right of action against an insurer for RSA 417 violations requires a prior finding by the Insurance Commissioner that the insurer violated Chapter 417, or a final cease-and-desist order. We therefore intend to file a formal complaint with the New Hampshire Insurance Department if this claim is not resolved.

Upon filing a complaint, the NHID must act within 120 days (RSA 417:6 / RSA 417:12). If the NHID fails to act within 120 days, the practice is deemed not to be a violation. If the NHID issues a finding, our client may then bring a private lawsuit and recover damages, costs, and reasonable attorneys' fees (RSA 417:19).

IX. CONTRACT DAMAGES AND CONSEQUENTIAL DAMAGES

A. Policy Benefits Owed

[CARRIER SHORT NAME] is contractually obligated to pay our client the full net balance due of $[____________] as detailed in Section VI.H above.

B. Consequential Damages

As a result of [CARRIER SHORT NAME]'s [delay / underpayment / wrongful denial], our client has suffered consequential damages beyond the policy benefits themselves:

C. Interest — RSA 336:1

All amounts wrongfully withheld accrue interest at the annual judgment rate set under RSA 336:1(II) — currently [____]% per year — from the date demand is made.

Accrued interest to date ([____] months at [____]%): $[____________]

D. Punitive Damages — Not Available in NH

As stated above, RSA 507-D:1 prohibits punitive damages in New Hampshire. No punitive damages are sought. This does not limit recovery of actual, consequential, or interest damages.

X. TOTAL DEMAND

We hereby demand payment of the total sum of $[____________] as follows:

XI. RESPONSE DEADLINE AND CONSEQUENCES

THIS DEMAND MUST BE ACCEPTED BY 5:00 P.M. EST ON [__/__/____].

If [CARRIER SHORT NAME] fails to accept this demand:

1. Litigation will be filed in New Hampshire Superior Court ([________________________________] County) seeking:
   - Full policy benefits
   - All consequential damages
   - Prejudgment interest at the RSA 336:1 rate
   - Post-judgment interest
   - Attorneys' fees and costs (upon NHID finding — RSA 417:19)

2. Regulatory complaint will be filed with:

   New Hampshire Insurance Department
   Consumer Services Division
   21 South Fruit Street, Suite 14
   Concord, NH 03301
   Phone: (603) 271-2261 / (800) 852-3416
   Online: www.insurance.nh.gov

3. Appraisal will be formally invoked under the policy (if not already done)

4. All rights reserved, including the right to seek additional damages as they accrue

XII. DOCUMENT PRESERVATION NOTICE

This letter constitutes formal notice to preserve all documents and electronically stored information (ESI) related to this claim, including without limitation:

• Complete claim file in all versions
• All internal communications and emails regarding this claim and property
• Adjuster notes, diaries, activity logs, and field inspection notes
• All communications with and from our client
• Photographs, videos, and drone imagery
• All expert reports, estimates, evaluations, and correspondence
• Claim handling guidelines, manuals, procedures, and training materials
• Reserve documentation (initial and all changes)
• Supervisor notes, approvals, and quality assurance reviews
• All vendor invoices and payments

Failure to preserve this information may result in sanctions and adverse inference instructions at trial.

XIII. CONCLUSION

[CARRIER SHORT NAME] issued our client a property insurance policy in New Hampshire, accepted years of premiums, and promised to pay for covered losses. A covered loss has now occurred. Our client has cooperated fully. The coverage is clear. New Hampshire law requires [CARRIER SHORT NAME] to pay. We urge [CARRIER SHORT NAME] to honor that commitment by accepting this demand.

Respectfully submitted,

[________________________________]

By: _______________________________________________
[________________________________]
NH Bar No. [________________________________]
[________________________________]
[________________________________], NH [________]
Tel: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

• Policy declarations page and relevant policy provisions
• Contractor / public adjuster estimate
• Photographs of damage (pre- and post-loss)
• Personal property inventory and receipts
• ALE / temporary housing documentation
• Mitigation receipts
• Proof of loss (submitted [__/__/____])
• NH State Fire Marshal / fire department report (if applicable)
• Any expert or engineering reports

CC:

• [________________________________] (Client)
• [________________________________] (Mortgagee / Loss Payee, if applicable)

NEW HAMPSHIRE PROPERTY INSURANCE QUICK REFERENCE

SOURCES AND REFERENCES

• RSA 407 — Standard Fire Insurance Policy: https://gc.nh.gov/rsa/html/XXXVII/407/407-mrg.htm
• RSA 407:16 — Judgment: https://gc.nh.gov/rsa/html/xxxvii/407/407-16.htm
• RSA 417:4 — Unfair Claims Settlement Practices: https://law.justia.com/codes/new-hampshire/title-xxxvii/chapter-417/section-417-4/
• RSA 417:19 — Private Right of Action: https://law.justia.com/codes/new-hampshire/title-xxxvii/chapter-417/section-417-19/
• RSA 507-D — Punitive Damages Prohibition: https://gc.nh.gov/rsa/html/LII/507/507-mrg.htm
• RSA 507:7-d — Comparative Fault: https://law.justia.com/codes/new-hampshire/title-lii/chapter-507/section-507-7-d/
• RSA 508:4 — Statute of Limitations: https://law.justia.com/codes/new-hampshire/title-lii/chapter-508/section-508-4/
• RSA 336:1 — Interest Rate: https://gc.nh.gov/rsa/html/xxxi/336/336-1.htm
• Lawton v. Great Southwest Fire Ins. Co., 392 A.2d 576 (N.H. 1978): https://case-law.vlex.com/vid/lawton-v-great-southwest-891490274
• Bell v. Liberty Mutual Ins. Co. (N.H. 2001): https://www.courts.state.nh.us/supreme/opinions/2001/bell053.htm
• NH Insurance Department — Consumer Rights (United Policyholders): https://uphelp.org/claim-guidance-publications/insurance-consumer-rights-in-the-state-of-new-hampshire-2022/
• NH Insurance Department — Complaint Filing: https://www.insurance.nh.gov/consumers/filing-complaint
• Sulloway & Hollis — NH Unfair Claims Settlement Practices Compendium: https://www.sulloway.com/wp-content/uploads/2022/02/DRI-Compendium-NH-Chapter-C1799816xA5F95-2.pdf
• NH Civil Interest Rates — NH Judicial Branch: https://www.courts.nh.gov/our-courts/superior-court/civil/civil-interest-rates