In 2016, State Farm came out with a new appraisal provision for its homeowner insurance policy.1 This new provision makes the appraisal process extremely burdensome for policyholders. While I have always felt the new provision violates the Standard Fire Policy, a Michigan federal district court recently reached the same conclusion.
Continue Reading State Farm’s Appraisal Provision Violates the Standard Fire Policy

The reaction and calls from those involved with appraisal to the post, Is Appraisal Governed Under the Federal Arbitration Act? have generated a great deal of concern. The emotion was near panic from those who make a living as appraisers asking how to get approved as an arbitrator. Others simply asked what does this practically mean—will the process change
Continue Reading If Appraisal Is Governed by the Federal Arbitration Act, What Is the Process?

Louisiana Act 345 will have an immediate impact on Louisiana property insurance claims from Hurricane Ida. The law just became effective on August 1, 2021, without much publicity. Hurricane Ida has done significant damage in Louisiana, and everybody involved in the claims process should carefully consider this new law.
Continue Reading New Louisiana Property Insurance Law Impacts Hurricane Ida Claims

INTRODUCTION: Appraisal provisions have been a feature of insurance policies in Texas for well over a century.1 Indeed, in the Texas Supreme Court’s 2009 opinion of State Farm Lloyds v. Johnson, the court noted that it has only addressed insurance appraisal provisions a total of five times between 1888 and 2002.2 Since Johnson, insurance appraisal law has grown substantially and now has claimed a front-row seat in Texas property insurance coverage litigation. The Randel case, discussed below, is the most recent appraisal opinion.
Continue Reading Texas Appraisal Law Update

Many insurance policies contain an appraisal provision which provides a mechanism to insurance companies and policyholders to resolve disputes between themselves relating to the amount of the loss resulting from a storm or loss causing event without a formal lawsuit. The appraisal is “an act of estimating” or “a valuation of property by the estimate of an authorized person.”1 The provision permits a panel of qualified and disinterested individuals to review the loss and determine a fair valuation of the loss without influence or direction from the parties.
Continue Reading How to Avoid Waiving Your Right to an Appraisal to Determine the Amount of Damage to Property in Iowa