When a homeowner files an insurance claim after a fire, storm, or other disaster, every extra day of waiting can bring them more stress, bills, and uncertainty.
A new analysis suggests those delays can also lead to millions in added earnings for insurers.
What's happening?
According to an analysis by the Consumer Federation of America and Weiss Ratings, insurers stand to collect about $61.6 million in extra interest and investment income if homeowners' claim payments are pushed back by a week — roughly $8.8 million for each day those claims remain unpaid.
The analysis relied on data from Weiss Ratings, an independent financial institution rating firm, which estimated 2024 daily investment income for U.S. property and casualty insurers at roughly $241 million. About $24.7 million of that total was tied to invested homeowners insurance premiums and surplus funds.
"Insurance companies cancel us if we are late on a premium payment, but when they are late on a claim payment, they make money," Douglas Heller, director of insurance at the Consumer Federation of America, said.
Across all property and casualty lines — including auto, homeowners, and business coverage — that figure rises to $52.3 million in investment income for each extra day of claim delays.
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Why does it matter?
For families dealing with a damaged or destroyed home, delayed claim checks can hold up repairs, temporary housing, and the process of getting life back on track. The industry's financial incentive to wait can create hardship for people already facing a crisis.
Delayed claim payments accounted for 22% of about 65,000 complaints that state insurance commissioners logged in 2025, making it the largest complaint category, according to the analysis.
The report also pointed to a California Department of Insurance review of 220 State Farm claims tied to the 2025 Los Angeles wildfires. The department found 27 instances in which State Farm had agreed to pay, but the policyholder was not paid within 30 days.
What's being done?
One policy response is already under consideration in California. Senate Bill 878 would set written response deadlines for insurers and require them to pay interest once a claim remains unpaid for more than 30 days after specified handling milestones are reached.
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There are also practical steps homeowners can take when a claim stalls. Keeping a detailed record of calls, emails, estimates, and payment promises can help create a paper trail. Homeowners can also ask for updates in writing and file a complaint with their state insurance department if deadlines appear to be slipping.
The report also pointed to an issue within the insurance business itself: Companies profit from investing premium money before claims are paid. Berkshire Hathaway CEO Warren Buffett famously called that pool of money "the float."
"Instead of incentivizing insurers to delay claims, there should be consequences," Heller said. "The customer waiting for their claim to be paid, not the company causing the delay, should earn the interest that accumulates."
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