Wednesday, February 9, 2011

Insurance Appraisal Not Appropriate If Insured Fails To Comply With Post Loss Obligations

In Citizens Property Insurance Corp. v. Mango Hill Condominium Association 12, Inc. (3D10-2014), the Third District again reversed a trial court's order compelling appraisal so that the trial court could first determine whether the insured had complied with its post loss obligations. The court stated:
In October of 2005, Mango Hill made a claim to Citizens to recover for damages sustained to its condominium buildings during Hurricane Wilma. Citizens investigated the claim and issued a number of checks to Mango Hill for repairs after determining that the damages claimed were covered under its policy. Mango Hill subsequently retained a public adjuster and demanded additional funds for repairs. Unsatisfied with Citizens' response, Mango Hill demanded appraisal, supporting that demand with a sworn proof of loss, an “estimate and contents report,” and a report from its engineering firm regarding the damages. The current president of the condominium association (who was not president when the losses were incurred) also submitted to an examination under oath. Thereafter, Citizens made requests for additional documents and information regarding this new claim and refused to proceed to appraisal until such information was provided.
The trial court entered an order compelling appraisal. The Third District reversed concluding that "until the policy's post-loss conditions were met, there was no disagreement as to the amount of loss to be appraised."


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