Florida Appellate Court Holds That Policy’s Appraisal Provision Applies To Assigned Claim

A Florida appellate court held that water mitigation services performed by an assignee of the insured were part of the amount of a covered loss, and that the policy’s appraisal provision therefore clearly and unambiguously applied to the assignee’s claim. Express Damage Restoration, LLC v. Citizens Prop. Ins. Corp., 46 Fla. L. Weekly D1023a (Fla. 3d DCA May 5, 2021).

The insured’s home sustained water damage, and the insured retained a water mitigation service in exchange for an assignment of benefits. The assignee provided the insurer with its invoice and the assignment of benefits contract, which the insurer found to be excessive. The insurer paid the assignee what it believed was owed and demanded appraisal of the loss pursuant to the policy’s appraisal provision. The assignee filed a complaint for declaratory relief and argued that the appraisal provision was wrongfully invoked because it did not apply to water mitigation services. The parties filed cross-motions for summary judgment, and the trial court ruled in favor of the insurer.

The appellate court affirmed. The assignee argued that the services were provided to prevent further damage to the property, and not to repair existing damage. The policy provision provides that either party may demand appraisal to resolve disagreement regarding the amount of the covered loss. The appellate court found that the work performed by the assignee was part of the amount of the covered loss, and thus, the appraisal provision unambiguously applied to the services provided by the assignee.