Insured Cannot Sue to Challenge Binding Appraisal Decision

Contractors on roof

The policy's appraisal provision said a decision by any two of the two appraisers and umpire would be binding.

December 16, 2023
Tred R. Eyerly - Insurance Law Hawaii

The court dismissed the insured condominium association's challenge to an appraisal award. The Courtyards at Prairie Fields Condominium Association v. West Band Mut. Ins. Co., 2023 U.S. Dist. LEXIS 169458 (N. D. Ill. Sept. 22, 2023).

In July 2020, the insured filed a claim with West Bend for damage to the property's roof and other building components as a result of wind and hail. West Bend inspected and estimated the replacement cost for the damage was $60,989.54. This amount was paid to the insured minus the $10,000 deductible. The insured believed the damage was so severe that the roofs need to be replaced, which the insured estimated would cost $1,389,600. The insured demanded an appraisal.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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