Allegations of additional damage are insufficient to challenge an insurance appraisal award, according to the Ohio Supreme Court. In One Church v. Brotherhood Mut. Ins. Co., the Court examined a windstorm insurance coverage dispute that resulted in an appraisal award. The policyholder brought a lawsuit following the award, contending that, after appraisal, additional hidden damage was discovered that the insurer refused to pay.
Although the policyholder contended that the lawsuit was not a challenge to the initial appraisal, the Court disagreed, noting that the policyholder admitted that it sought full compensation for the underlying windstorm loss, and the appraisal was not a final determination of the entire loss. Instead of bringing a new claim, the Court found that the policyholder was trying to augment the existing appraisal award.
To challenge an appraisal under Ohio law, the policyholder must allege fraud or mistake – with particularity. Because the policyholder did not sufficiently allege mistake, instead contending that the appraisal award was incomplete, the Court held that the contention was insufficient. The Appraisal was held to be binding.
Read the opinion here.
This post was originally published through Horst Krekstein & Runyon’s Property in 60 Seconds Newsletter. If you would like to receive future copies of that newsletter, please use this link to sign up.