Limitations on Discovery: Going Behind the Face of an Appraisal Award

Originally published by Corey Harris .

Disputed insurance claims are often resolved in the appraisal process. The process is generally less time consuming and less expensive than full blown litigation and, if done properly, can resolve the majority of discrepancies between the policyholder’s estimate and the position of the insurance carrier.

While the basic law on appraisal is fairly well developed in most states, a growing trend of litigation after the appraisal process has forced courts to consider what role, if any, the appraisal panel should play in that circumstance.

Florida courts have found that litigation over an appraisal award must be based on the face of the award itself and have prohibited parties from going further to have an award overturned. In First Protective Insurance Company v. Hess,1 the insurance carrier attempted to have an appraisal award overturned by arguing that the appraisal panel had awarded more money for stolen jewelry than the $1,000 limit in the insurance policy allowed. The award…

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