Insurance firms are rewriting commonplace appraisal language in lots of states the place that is allowed. We have just lately acquired quite a few requests about these newly discovered contract provisions. For instance, one from a Colorado kind despatched to us indicated that appraisal may solely happen if each events agreed to the appraisal.
Absent a statute or regulatory prohibition, insurance coverage firms can write insurance coverage contracts as they want. This contains altering the usual language concerning appraisal, the method of appraisal, and what might be appraised.
The pattern is that insurance coverage firms are rewriting commonplace appraisal clauses, and most departments of insurance coverage are approving them. Those contemplating invoking appraisal ought to fastidiously learn the appraisal provisions.
I warned about this in State Farm New Policy Filing In California Should Be Concerning To All In the Property Insurance Industry—An Example Is the New Appraisal Language. Ed Eshoo defined how these provisions could also be unlawful in states with a regular fireplace coverage in State Farm’s Appraisal Provision Violates the Standard Fire Policy.
Thought For The Day
Some individuals don’t like change, however it’s essential to embrace change if the choice is catastrophe.
—Elon Musk