When Can A Policyholder Demand An Appraisal?
In Florida insurance law, an appraisal provides a means of resolving a dispute between the insurer and the policyholder regarding the amount of a covered loss. Appraisal is not meant to resolve whether a claim is insurable to begin with. Rather, it provides a way to arbitrate the question of how much the insurer owes to the policyholder. Florida Court Rules Appraisal “Premature” Since Condo Association Failed to Document Its Claims The key to appraisal is that it requires a genuine disagreement between the parties. This might seem obvious, but there have been a number of Florida cases where courts have found that appraisal is “premature” as the parties have not engaged in a “meaningful exchange of information” to demonstrate that a dispute exists. Just recently, the Florida Third District Court of Appeals addressed this subject. In Certain Underwriters at Lloyd’s, et al. v. Lago Grande 5-D Condominium Association, Inc., a condominium association filed a claim with its insurer for damages sustained to the association’s buildings during Hurricane Irma in September 2017. The insurer acknowledged coverage for a portion of the claim and paid the association approximately $137,000. Several months later, the association sued the insurer for alleged underpayment. The association also moved to compel appraisal, as required by the terms of the insurance policy. A judge granted the appraisal motion, prompting the insurer’s appeal. The Third District sided with the insurer, agreeing that appraisal was premature. The appellate court noted the association had been “silent” following the initial partial payment of its claim. The association simply waited 10 months and then filed a lawsuit. At no point, however, did the association make any attempt to present its own estimates of the hurricane damage or the costs of making repairs to its property. Indeed, even after filing its lawsuit, the association failed to present any such evidence to the trial judge. As the Third District explained, appraisal is only triggered under Florida law after there has been a “meaningful exchange sufficient to establish a disagreement regarding the value of property or the amount of the loss.” The association’s decision to remain silent for months after receiving the insurer’s payment did not, in and of itself, establish a “genuine disagreement” existed. Put another way, a policyholder cannot simply complain the insurer did not pay them enough. The policyholder must show its work and actually present proof establishing what they think they are owed. As such, the association here was not entitled to demand an appraisal at this time. Speak with a Florida Insurance Lawyer Today Insurance policies are legal contracts that impose duties and responsibilities on both parties. So if you are involved in a potential insurance dispute, it is important that you understand these duties and comply with all of your legal obligations. Otherwise, you might find yourself in trouble should litigation arise. If you need advice or representation from an experienced Tampa insurance litigation attorney, contact HD Law Partners today to schedule a consultation. Source: https://3dca.flcourts.org/content/download/836598/opinion/210636_DC13_05042022_101351_i.pdf Posted in Insurance Litigation | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us