Opinion ID: 1312493
Heading Depth: 1
Heading Rank: 2

Heading: Policy Limitations Provision.

Text: The contractual clause contained in Preston Mutual's home-guard policy provides: We may not be sued unless there is full compliance with all the terms of this policy. Suit must be brought within one year after the loss. This limitations provision is contrary to the general statutes of limitations, see Iowa Code chapter 614 (1991), and is modeled after the standard fire insurance policy form. See Iowa Code § 515.138 (Sixth). The standard form limitations clause provides: No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within twelve months next after inception of the loss. Id. By permitting insurance companies to shorten the general limitations period it appears the legislature intended to allow insurers to protect themselves from the bringing of stale claims which involve the added dangers of fraud and mistake. We have upheld the validity of this limitations provision. See Thomas v. United Fire & Casualty Co., 426 N.W.2d 396, 399 (Iowa 1988).