How long do I have to file a bad-faith claim in Alabama?

All FAQs

Quick answer: Bad faith is a tort, and Alabama's general limitations period for torts not otherwise specifically covered is two years (Code of Alabama Section 6-2-38). How that period applies to a particular bad-faith claim can depend on the facts, so confirm timing with an attorney before relying on it.

Because Alabama treats insurance bad faith as a tort rather than a statutory claim, the deadline to file comes from Alabama's general tort limitations rule.

What is the deadline?

Alabama's general limitations period for tort claims not otherwise specifically covered, which includes a common-law insurance bad-faith claim, is two years under the catch-all provision of Code of Alabama Section 6-2-38.

When does the two-year clock start?

How that period applies to a specific bad-faith claim, including exactly when the clock starts, can depend on the facts of the denial and when the alleged bad-faith conduct occurred. This is not always the same date as when the underlying claim was filed.

What happens if I wait too long?

Missing the limitations period generally bars the claim entirely, regardless of how strong the underlying facts are. A policyholder in Montgomery who suspects bad-faith conduct should not wait to have that timing confirmed.

What should I do next?

Confirm the exact timing with an attorney before relying on any general rule, since the specific facts of your denial can affect the calculation. See the full bad-faith guide for how this deadline fits with the claims-handling process.

Does the two-year clock ever pause or restart?

Alabama's discovery rules and any tolling that might apply to a specific bad-faith claim are fact-dependent questions an attorney evaluates on the specific timeline of a denial, not a general rule that applies the same way to every case. Assuming the clock definitely starts on the date of the original loss, or definitely starts on the date of denial, can be wrong either way depending on the facts.

Second example

A Vestavia Hills policyholder denied a claim in January who does not consult an attorney about a possible bad-faith claim until three years later, believing the deadline runs from when they finally decided to pursue it rather than from the underlying conduct, risks having already missed the window entirely. Confirming the deadline early, even before deciding whether to actually pursue a claim, preserves the option.