Tag Archives: Appraisal

Eighth Circuit Agrees: Pre-Award Interest on Appraisal Award is Appropriate

I recently wrote about the case of Poehler v. Cincinnait Insurance Company,1 in which the Minnesota Supreme Court recently held that Minnesota Statute section 549.09 provides for pre-interest on insurance appraisal awards. Following this decision, the Eighth Circuit Court of Appeals in Housing and Redevelopment Authority of Redwood Falls v. Housing Authority Property Insurance,2 similarly … Continue Reading

Appraisers Agreeing Not To Include Issues of Loss May Render Policyholders with No Later Recovery

Appraisals can result in losing propositions for policyholders. I often teach that policyholders need to make certain that they do their best during appraisal and not expect a bad award to get overturned. Policyholders need very hardworking, honest, and knowledgeable persons selected as their appraisers.… Continue Reading

The Scope of Appraisal in Illinois

The appraisal clause in a typical residential and commercial property insurance policy provides for an appraisal if the parties disagree as to “the amount of loss.”1 That phrase has been the subject of extensive legal debate between insureds and insurers in terms of its meaning and scope. While most courts have concluded that ascertaining the … Continue Reading

Payment of an Appraisal Award Does Not Foreclose Insured’s Claim for Vexatious and Unreasonable Conduct in Illinois

Often an insurer will assert that their payment of an appraisal award has satisfied their obligation under the policy such that an action for “bad faith” cannot be brought. An insurer recently raised this issue in a motion to dismiss against our client arguing that the insured’s right to bring a claim for damages under … Continue Reading

Is a “Matching” Dispute Appropriate for Appraisal?

In my last blog post, I discussed Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 and the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. Windridge of Naperville also involved whether appraisal is appropriate to resolve a dispute … Continue Reading

Does a Partial Denial and Jury Demand Prohibit the Insurer From Proceeding with Appraisal?

It happens frequently: The insurance company admits the policy covered part of the loss but refuses payment at the time because the amount of the loss falls below the deductible. The insurer then admits the insured also suffered other damages to the property, but denies coverage for this damage for a variety of exclusions or … Continue Reading

Is a Dispute Over General Contractor Overhead and Profit Appropriate for Appraisal?

In Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 a federal district court in Illinois recently addressed the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. There, hail damaged townhome buildings, requiring repairs. Philadelphia paid for losses it … Continue Reading

What’s Happening in Appraisal – Part 1

I recently spoke at a seminar our firm hosted for public adjusters. During the seminar, I had at least three separate conversations with public adjusters who voiced their frustration with the current trends in appraisal in the Garden State and beyond. The common thread was a belief that the insurance carriers were using “bought and … Continue Reading

Impossibility of Performance Does Not Excuse an Insurer from Appraisal

The appraisal process is to provide a plain, speedy, inexpensive and just determination to an insurance dispute. However, as many first party property lawyers and homeowners have experienced, appraisal is not necessarily speedy, inexpensive or just. In fact, many times the insurer will refuse to participate in the appraisal process requiring the insured to bring … Continue Reading

Insurance Appraisal takes on the rules of Arbitration but Preserves Bad Faith in Hawai’i

Insurance is a heavily regulated industry and everyone who reads our daily blog knows that insurance rules and regulations vary by state and fall under each individual state’s jurisdiction. Hawai’i is no different and in a state whose insurance laws are still evolving, it is interesting to see that when it comes to appraisal in … Continue Reading

Appraisal in Massachusetts is a “Reference” Proceeding

In the property insurance world, appraisal is a commonly used procedure to resolve disagreements over the amount of a loss. However, in Massachusetts, in claims under fire insurance policies, it is referred to as a “reference proceeding.” The “reference procedure” provides that a panel of 3 arbitrators, or “referees,” determines the amount of loss or … Continue Reading

New Appraisal Clauses Change Appraisal

State Farm and Farmers have created new property insurance policy forms which significantly change the rules of appraisal. One of the trends of insurance coverage is that new policies are not being written with standard language, where years of case law have interpreted meanings of phrases used by all insurers. These two forms are perfect … Continue Reading
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