Appraisal and the Homeowners Policy
February 2, 2011
I have three policyholders that have requested appraisal. The first one was concluded yesterday finding for the company. The policy holder's appraiser told the umpire that the insured was just going through the motions of appraisal and if they didn't get a new roof they were going to file suit against the company.
After a careful review of the policy I see the language is different in the Homeowner's policy than it is in the auto policy. The Homeowner's policy states, “That a decision agreed to by any two will set the amount of loss.”
The auto policy states, “A decision agreed to by any two will be binding.”
Is the decision made by our appraiser and the umpire final and binding? Can the insured still file suit if he doesn't like the outcome of the appraisal?
Illinois Subscriber
The standard HO 00 03 does not state that the decision of the appraisers and the umpire is final and binding so yes, the insured has the right to sue as long as all terms under section I of the policy have been complied with.
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