Appraisal Process Trumps Litigation As A Means Of Resolving Insurance Related Property Valuation Issues

Section 128 of the Insurance Act, RSO 1990, c I.8 (the "Act"), applies to an insurance policy containing a condition, statutory or otherwise, providing for an appraisal to determine specific matters – typically, the value of insured property – in the event of a disagreement between the insurer and the insured. More specifically, s. 128(5) of the Act, authorizes the court to appoint an appraiser where a party fails to do so within seven days of being served with notice to do so.

In addition, statutory condition 11 under the Act provides that in the event of disagreement as to the> value of A) the property insured, B) the property saved, and/or C) the amount of the loss, these matters "shall be" dealt with "by appraisal as provided under the [Act] before there can be any recovery under [the policy] whether the right to recover on the [policy] is disputed or not, and independently of all other questions." Statutory condition 11 also provides that there "shall be no