A surplus lines insurer waived its right to object to a condominium association’s choice of appraiser because the insurer waited too long to make the objection. The case is Biscayne Beach Club Condo. Ass'n, Inc. v. Westchester Surplus Lines Ins. Co., 111 F.4th 1182 (11th Cir. 2024).

Biscayne Beach Club Condo Association (Biscayne) had a property in southern Florida that suffered severe damage in a storm. Its commercial property carrier, Westchester, accepted the subsequent claim. Biscayne, however, was not pleased with the payments and filed suit against Westchester.

Biscayne subsequently invoked the policy’s appraisal clause. This clause stated that each party would appoint an impartial appraiser to determine the amount of the loss, and the appraisers would choose an umpire. In the event of a disagreement, the umpire would evaluate each appraisal and come to a conclusion; the policy stated that “a decision agreed to by any two [would] be binding” on both parties (emphasis added).