Property insurance policies contain provisions to resolve
disputes between the policyholder and the insurer over damage
claims. These provisions provide for an independent appraisal of
the alleged damaged property with the appraiser’s final award
binding the parties. An appraisal award is akin to an arbitration
award in many respects. In a recent case, a policyholder was
dissatisfied with the appraisal award and sued the insurer for
breach of contract and bad faith.
In Villas at Winding Ridge v. State
Farm Fire & Casualty Co., No. 19-1731 (7th Cir. Nov.
8, 2019), a condominium complex suffered hail damage during a
storm. The damage was not discovered until nearly a year later when
the complex had its roofs inspected for possible replacement. A
claim was filed by the policyholder with its insurer and the
adjuster prepared a repair cost estimate that was not satisfactory
to the complex. The carrier paid the claim as estimated, but the
parties continued to spar over the
