I often hear from insureds that have been negotiating with their insurance company for a period of time when the insurer suddenly demands appraisal. The insureds do not want to go to appraisal and the first question is always, “Can the insurance company do that?” followed by “This claim has been going on for months, … Continue Reading
Last year in one of my blogposts, I wrote about Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company, and the issue whether appraisal is appropriate to resolve a dispute over the cost of repairing physically undamaged siding of townhome buildings to remedy a mismatch with repaired damaged siding. There, a federal district court … Continue Reading
The majority of insurance policyholders do not realize that their property insurance policy may contain an appraisal provision. Insurance companies attempt to use appraisal provisions to impose unnecessary burdens on insureds and to eliminate the insureds potential to file a lawsuit against the insurance company and its adjusters for violations of the Texas Insurance Code, … Continue Reading
On April 18, 2018, the Texas Commissioner of Insurance issued Order No. 2018-5463, extending the deadline for a Texas Windstorm Insurance Association (TWIA) policyholder to demand appraisal on their Hurricane Harvey claim. Harvey made landfall in Texas and affected several parts of the Greater Houston area as well as several coastal areas from August 25 … Continue Reading
American politics and government can make people extraordinarily upset. The very nature of democracy, modern regulation, those being regulated and those regulating promotes active and emotional disagreements of what is the best public policy and how it should be determined. So, my first observation from yesterday’s post, Colorado House Bill 18-1153 Concerning Appraisals for Insurance … Continue Reading
Note: This guest blog is by Scott deLuise. Scott deLuise has been a public adjuster in Colorado since 1985, and licensed since Colorado implemented licensing. He is licensed in 28 states and Puerto Rico. He is a past president of NAPIA, and founding president of RMAPIA. Monday before last was a sad day for the … Continue Reading
Appraisal provisions in property insurance policies typically provide for a judge of a court of record in the state in which the insured property is located to select an umpire if the parties cannot agree upon one. What happens if one party fails to respond to the appraisal demand? Can a judge select an umpire … Continue Reading
2017 brought with it three major hurricanes causing widespread flooding to thousands of homeowners and business owners. Those policyholders with a flood insurance policy through the National Flood Insurance Program (“NFIP”) might consider invoking the flood policy’s appraisal provision.… Continue Reading
Following a loss, the issue of replacement with “like kind and quality” often arises whether it be with the replacement of personal property or building materials. The phrase “like kind and quality” is typically not defined in an insurance policy, so whether construction is of “like kind and quality” can easily become a dispute. But … Continue Reading
Insurance carriers and policyholders have historically enjoyed the benefits of the appraisal provision included in most property insurance policies. Appraisal tends to be less expensive, time-consuming, and formal compared to traditional litigation. Unfortunately, appraisal is not an option for policyholders in Puerto Rico.… Continue Reading
In theory, the appraisal process is intended to provide an efficient means of determining the cost to repair or replace damaged property. It is also intended to have a degree of finality – once the appraisal panel determines the amount of damages, the damages are typically fixed at that amount.… Continue Reading
The Law and Procedure of Insurance Appraisal is a fantastic work by Jonathan Wilkofsky. It is in its third edition and 1,400 pages explaining in full everything a property insurance practitioner would want to know about the topic. Here is a video of Jonathan describing the benefits of his treatise:… Continue Reading
Policyholders purchase property insurance and pay lofty premiums with the intention of their insured property being restored to where it was prior to a loss. But what happens when the loss affects only a portion of the siding or has destroyed only a handful of discontinued roofing tiles? Is the policyholder forced to accept mismatching … Continue Reading
The typical appraisal provision in an insurance policy requires that each party select a competent and impartial appraiser. However, what impartial means is usually undefined in the policy. Does advocacy on behalf of your appointed party mean you are not impartial? That question was recently addressed by the Colorado Court of Appeals in Owners Ins. … Continue Reading
Recently the Iowa Court of Appeals reversed the district court and upheld an approximate $1.4 million dollar appraisal award entered for the Walnut Creek Townhome Association.1… Continue Reading
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
The Minnesota Supreme Court recently held that Minnesota Statute §549.09 does not require an underlying breach of contractor or actionable wrongdoing to recover preaward interest on an insurance appraisal award in Poehler v. Cincinnati Insurance Company.1… Continue Reading
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 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
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
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
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
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
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
