Tag Archives: Scope of Appraisal

“Like Kind and Quality” Is an Appraisable Issue

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

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

The Scope of Appraisal, Part 7: Iowa

The trend continues for courts to interpret the scope of appraisal to include the determination of causation. The Iowa Court of Appeals joins the list of courts stating that the appraisal panel should consider causation in determining the amount of loss. In North Glenn Homeowners Association. v. State Farm Fire & Casualty Company,1 the Court … Continue Reading

The Scope of Appraisal Part 6: Indiana

Earlier this month, a federal judge sitting in the Southern District of Indiana examined the scope of the appraisal clause in the property insurance policy. Relying on many of the same cases I have discussed in earlier blogs in this series, the court found that the appraisal panel must consider causation as part of the … Continue Reading

Disagreement Over Scope of Damage NOT a Valid Objection to Appraisal Demand in Pennsylvania

We frequently field requests from public adjusters and clients concerning appraisal and scope of damages. The situation arises when appraisal is demanded by the insured and the carrier objects, arguing that appraisal is only for issues of price and cannot be invoked unless there is an agreed upon scope of damage. This notion was soundly … Continue Reading

The Scope of Appraisal, Part 5: Kentucky

An important aspect of appraisal is determining what damage was caused by the covered peril and what damage was caused by poor maintenance or construction, wear and tear, or other causes generally excluded in the standard property insurance policy. I believe both advocates for insurance carriers and policyholders can agree that this separation is vital … Continue Reading

The Scope of Appraisal, Part 4: Delaware

What is the proper scope of appraisal in property insurance claims? This is a common question and the answer is quite different depending on who you ask. Over fourteen years ago the District of Delaware analyzed the scope of appraisal and the opinion is still frequently sighted by parties advocating for the determination of causation … Continue Reading

The Scope of Appraisal Panel’s Authority in Texas

State Farm Lloyds v. Johnson,1 provides the controlling law on the issue of the scope of the appraisal panel’s authority. In Johnson, the claimant alleged that her roof had been damaged in a hailstorm and filed a claim. When the insurance company provided a much lower damage estimate than her claim requested, the she invoked … Continue Reading

The Scope of Appraisal, Part 3: Georgia

The Supreme Court of Georgia has held that an appraisal clause in an insurance policy can only resolve “a disputed issue of value…it cannot be invoked to resolve broader issues of liability.”1 This probably sounds familiar, because courts across the country generally hold that the “amount of loss” can be appraised, but issues of “coverage” … Continue Reading

The Scope of Appraisal: Does It Include Causation?

While the appraisal procedure is commonly used in property insurance claims, the proper scope of appraisal is often contested. Courts across the country generally agree that coverage determinations are reserved only to the courts. However, courts are divided on whether determinations of causation should be considered by the appraisal process.… Continue Reading