Case Law Update: Barlow v. American Bankers — Court Says 2023 Letter Started One-Year Flood Claim Deadline, Dismisses Suit

On October 5, 2026, a federal court in Fort Myers dismissed with prejudice a flood insurance lawsuit that Cape Coral homeowners Wayne and Cynthia Barlow filed against American Bankers Insurance Company of Florida, Barlow v. American Bankers Insurance Company of Florida, No. 2:26-cv-2189 (M.D. Fla.). The court held that a letter American Bankers sent in October 2023 was a denial of the Barlows’ tile flooring claim, which started the one-year federal deadline to sue, and that the July 2026 lawsuit came too late. The order directs the clerk to enter judgment and close the file.

What Happened

The Barlows’ home was insured under a Standard Flood Insurance Policy (SFIP) issued by American Bankers as a “Write-Your-Own” carrier in the National Flood Insurance Program, which FEMA administers. As the court described the complaint, the Barlows reported flood damage to their tile flooring, and American Bankers made two payments, in January 2023 and August 2025, that covered only cleaning and drying the existing floor.

The court focused on three letters:

• October 26, 2023. Responding to a request for additional payment, American Bankers wrote that the estimate from the homeowners’ public adjuster “has no supporting documentation to address the tile flooring or price differences,” denied payment for content manipulation and final cleaning, and stated that the policy “cannot respond to assist you with your Request for Additional Payment for this claim at this time.” It attached a policyholder rights document.
• August 18, 2025. According to the complaint, American Bankers denied the tile removal and replacement claim, citing “no evidence of direct damage from the flood waters.”
• November 3, 2025. According to the complaint, after an engineering consultant’s report attributed the tile damage to “material shrinkage and long-term age-related deterioration,” American Bankers denied the tile claim again.

The Barlows sued for breach of contract on July 14, 2026. American Bankers moved to dismiss, arguing the claim was time-barred because it was not filed within one year of the October 2023 letter.

The Court’s Reasoning

Under federal law, a flood policyholder suing over an SFIP claim must file within one year after notice of the claim’s disallowance or partial disallowance (42 U.S.C. § 4072). The court said a letter need only be “sufficient to put an insured on notice that a part of her claim has been disallowed” to start that clock.

The Barlows argued the October 2023 letter denied only the content manipulation and cleaning charges. The court disagreed, reasoning that the letter also said the policy could not respond to the request for additional payment, a request that “explicitly included an estimate of repairs for the tile flooring.” The letter lacked dollar amounts or cited exclusions, but the court found that “not fatal as the intent of the letter is clear.”

The court also rejected two other arguments:

• “At this time.” The Barlows argued the phrase signaled a documentation shortfall, not a final denial. Citing decisions from other federal courts, the court said the limitations period is still triggered even if more documentation is later submitted or the adjustment process continues.
• Later payments and denials. The Barlows pointed to supplemental payments, American Bankers’ retention of an engineering consultant, and the later denial letters. The court held that additional payments or continued review do not affect the running of the limitations period, and quoted a Ninth Circuit decision that once the period is triggered, “reconsideration of that denial or responding to further inquiries about the case has no effect on the running of the limitations period.”

Because the limitations period began on October 26, 2023, and the suit was filed “almost 34 months” later, the court granted the motion and dismissed the complaint with prejudice.

What This Means If You Have a Flood Insurance Claim

• Federal flood policies run on a federal clock. For an SFIP claim, the deadline to sue is set by federal statute, 42 U.S.C. § 4072, and runs one year after notice that all or part of the claim was disallowed. It is separate from the rules that govern a Florida homeowners policy.
• A short letter can start the clock. In this case, a letter refusing a request for additional payment was treated as a denial of the tile claim included in that request, even though it did not list dollar amounts or exclusions and said “at this time.”
• Ongoing adjustment may not pause the deadline. The court held that later payments, the engineering consultant’s involvement, and repeat denial letters did not affect the running of the one-year period.
• Read every letter from your flood carrier, and keep it. Note the date of any letter that declines to pay any part of your claim, and keep copies of the policyholder rights documents that come with it.

Every claim turns on its own policy language, letters, and facts, and this order does not predict the result in any other case. If your flood or property insurance claim has been denied, underpaid, or delayed, see our guide to denied insurance claims in Florida. Louis Law Group offers a free case evaluation.

Case details: Wayne Barlow and Cynthia Barlow v. American Bankers Insurance Company of Florida, No. 2:26-cv-2189-SPC-NPM (M.D. Fla., Fort Myers Division), Opinion and Order (Doc. 22) entered October 5, 2026. Complaint filed July 14, 2026; cause of action listed as 42 U.S.C. § 4072. Motion to dismiss granted; complaint dismissed with prejudice. Status current as of October 19, 2026.

This article is for general information and is not legal advice. It summarizes a court order; facts described are as stated by the court, including allegations from the complaint. More rulings are collected on our Case Law & Industry Insights page.