This past week, a couple of clients inquired about the retention and storage period for their insurance documents. It's a question that isn’t asked frequently, but it's a good one!

Living in New York, you might have a stack of insurance documents—auto, homeowners, health, or life insurance policies—filed away somewhere. But how long should you keep those documents, and specifically, what papers should you hold on to?

Many would answer based on New York's Statutes of Limitations. At a high level, disputes involving insurance can be categorized into two main buckets.

• 3-Year Bucket for Injury & Property Damage: Under NY CPLR § 214 (4)-(5), claims for personal/bodily injuries involving accidents around your home or involving your automobile generally have a 3-year limit from the date of the incident.
• 6-Year Bucket for Contractual Claims: Under NY CPLR § 213(2), disputes involving an insurer denying coverage or failing to pay a claim typically have a 6-year time limit. This contractual challenge time frame applies to nearly any type of insurance program.

So, how does this break down by type of insurance?

Auto, Home, and Umbrella Insurance: 3-6 Years

Keep records of your Auto, Home, and Umbrella policies for at least three years after the policy expires. Following a claim, especially one involving injuries, consider retaining the entire policy and any related documents for 7 years or more, as lawsuits may arise later.

Health Insurance: 3-7 Years

Health insurance disputes, such as denied claims or billing errors, typically fall under the 6-year statute of limitations. However, provider disputes may be subject to a 3-year statute of limitations (NY CPLR § 213(2)). Ongoing treatments or appeals can extend the need for records, such as Explanation of Benefits (EOBs). Hold EOBs, claims, and medical bills for 3-7 years, especially for chronic conditions.

Life Insurance: Indefinitely While Active

Life insurance payout disputes typically follow the 6-year statute of limitations from the date of the insured's death or policy lapse. Tax or estate issues may require records post-payout. Maintain active policies indefinitely; after payout, retain records for a minimum of 7 years.

Final Thoughts

Don't worry if you have not kept records in this fashion. If you have had the same agent over the specified time frames, they should have access to your documents if needed. However, reconstructing these documents becomes more challenging if you have frequently switched agents or companies. Clients of The Ryan Agency have their policy histories securely stored for many years. Please don't hesitate to reach out if you have any concerns about your policy documents.

For more guidance, check the New York Department of Financial Services (www.dfs.ny.gov) and consult a lawyer for complex cases. By keeping records for the right duration, preferably digitally, to save space, you'll stay ready for any insurance challenge.