News & Analysis as of

Appraisal Awards Property Insurance

Cozen O'Connor

Southern District of Texas Holds that Appraisal Award is Inconclusive of Whether a Loss is Covered

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The Southern District of Texas recently held that an appraisal award did not establish liability for a covered loss under the policy. In Hoff v. Meridian Sec. Ins. Co., 2023 WL 5192013 (S.D. Tex. Aug. 11, 2023), Meridian...more

Zelle  LLP

Morakabian and Rosales Signal a Consensus View on Recovery of Attorneys’ Fees After Appraisal

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Chapter 542 of the Texas Insurance Code, also known as the Texas Prompt Payment of Claims Act (“TPPCA”), generally allows an insured to recover interest and attorneys’ fees, in addition to the amount of the insurance claim,...more

Faegre Drinker Biddle & Reath LLP

Insurer’s Appraisal Award and Statutory Interest Payments Entitle It to Summary Judgment

In a case of first impression, the Dallas Court of Appeals recently held that, under a statute passed by the Texas Legislature in 2017, if an insurer pays an appraisal award issued in connection with a weather-related...more

Cozen O'Connor

Accepting Coverage for Part of a Claim May Subject an Insurer to the Appraisal Process Under Tennessee Law

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Accepting coverage for part of a claim may subject an insurer to a policy’s appraisal process when the extent of covered damage is in dispute, according to a recent ruling issued by the Eastern District of Tennessee....more

Zelle  LLP

Texas Insurers' Paths to Post-Appraisal Summary Judgment

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Until recently, property insurers who paid a binding appraisal award in Texas were almost certain to end a matter by doing so, with respect to both breach-of-contract claims and all extracontractual claims. But changes...more

Cozen O'Connor

Fifth Circuit Weighs in on Aftermath of Texas Supreme Court’s Decisions Affecting Insurers’ Pre-Appraisal Award Payments and...

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Just a few short years ago, there was a bright line rule under Texas law concerning appraisal awards. If an insurer timely paid an appraisal award, that payment extinguished all of the insurer’s contractual and...more

Cozen O'Connor

The Supreme Court of Texas Finds that a Reasonable Payment of an Insurance Claim Does Not Satisfy the Texas Prompt Payment of...

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In Hinojos v. State Farm Lloyds, the Supreme Court of Texas addressed liability under the Texas Prompt Payment of Claims Act (the “TPPCA”) when an insurer timely pays only part of a claim....more

Zelle  LLP

5th Circ. Insurance Case May Encourage Post-Appraisal Suits

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On Oct. 6, the U.S. Court of Appeals for the Fifth Circuit is set to hear oral arguments in Pearson v. Allstate Fire and Casualty Insurance Company. The case centers on statutory construction of Chapters 542 and 542A of the...more

Haight Brown & Bonesteel LLP

Appraiser Declarations Inadmissible When Offered to Challenge the Merits of an Appraisal Award

In Khorsand v. Liberty Mutual Fire Ins. Co. (No. B280273, filed 2/27/18), a California appeals court affirmed an appraisal award favorable to a homeowners insurer, ruling that it was improper to admit as evidence in...more

Saul Ewing LLP

Texas Appellate Court Confirms that Insurer’s Payment of Appraisal Award Precludes Common Law and Statutory Bad Faith Claims

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Ortiz v. State Farm Lloyds, No. 04-17-00252-CV, 2017 WL 5162315 (Tex. Ct. App. Nov. 8, 2017). Oscar Ortiz submitted a claim to State Farm for damage to his property resulting from wind and a hailstorm. After inspecting the...more

Robinson+Cole Property Insurance Coverage...

Appraisal Award Unenforceable Where Suit Limitation Period Expired Prior To Filing Suit: New York County Dismisses Storm Sandy...

Suit limitation provisions in insurance policies shorten the statutory period of time that a plaintiff may bring a suit against an insurer for certain causes of action. A New York court recently held that an appraisal award...more

Cozen O'Connor

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result

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Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more

Cozen O'Connor

Texas Court Addresses What Constitutes an “Itemized” Appraisal Decision

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On Tuesday of this week, a unanimous panel of Texas’ intermediate level appellate court rejected arguments that an appraisal award that set forth lump sum replacement cost, depreciation, and actual cash value amounts for real...more

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