Co-authored by: Brianna Robert, Niki Abossedgh & Luc Shay
Biller, Sachs & Robert secured another important victory for homeowners this past October after a Connecticut Superior Court ordered an insurer to participate in an appraisal proceeding to determine the amount of loss suffered by two homeowners following a windstorm.[1] The homeowners turned to the Biller Law Firm after struggling with their insurer’s conflicting estimates and refusal to proceed with the appraisal process.[2]
Whenever a homeowner suffers a loss and makes a claim to his or her insurance company, there is always the potential for dispute between the insurer and the homeowner as to how much damage the homeowner’s property suffered or how much it will cost to fix this damage. Connecticut law provides a mechanism to address such disputes under Connecticut General Statutes § 38a-307 and § 38a-308.
Under these statutes, insurers are required to insert a provision into their insurance policies that allows an insured to initiate an appraisal process to determine a value for the amount of loss suffered by that insured.[3] This appraisal provision states that when the insured and the insurer fail to agree on the amount of loss suffered, each party may select its own appraiser to evaluate the loss.[4] The appraisers for each party will first attempt to agree on the amount of loss, but if they cannot do so, the two appraisers can submit their differences to an “umpire” to help decide the value of the loss.[5].
In Shaw v. CSAA Gen. Ins. Co., the homeowners, represented by the Biller Law Firm, attempted to assert their appraisal rights and obtain a determination as to the amount of loss their home suffered as a result of a windstorm.[6] Initially, the Defendant insurance company acknowledged that the homeowners had suffered a loss, however, the insurer initially estimated the value of the loss at only a little more than three thousand dollars.[7] After the homeowners hired a contractor, the defendant insurer provided the homeowners with a second estimate valuing the loss at around twenty-nine thousand dollars.[8] However, during repairs, the plaintiff’s contractor uncovered further interior damage, prompting the homeowners to submit an updated increased estimate.[9] Even though the defendant insurance company had initially accepted coverage of the claim, the insurance company tried to argue that the additional damage found by the contractor was not a part of the original claim.[10] The defendant insurance company further attempted to argue that if the newly discovered damages were not a part of the original claim, there would be no dispute over the amount of loss and therefore no need for an appraisal.[11]
The court rejected the insurance company’s argument and sided with the Biller Law Firm and its clients thereby granting their Motion to Compel Appraisal.[12] It emphasized that even if there is a coverage dispute, the appraisal process can proceed, ensuring disputes over valuation do not render appraisal clauses meaningless.[13] The court further cited Connecticut Supreme Court precedent, holding that an insurer cannot avoid appraisal by merely disputing coverage.[14] As the court explained, “[n]othing in the language of the appraisal provision in the policy indicates that resolution of a coverage dispute must precede appraisal.”[15] As a result, the court ordered the defendant insurance company to participate in the appraisal process.[16]
This decision underscores another significant victory for Biller, Sachs & Robert clients and a crucial win for Connecticut homeowners. This decision ensures statutory protections for homeowners in disputes with insurers and allows policyholders to assert their rights under appraisal clauses, expediting the resolution of valuation disagreements.
[1] See Shaw v. CSAA Gen. Ins. Co., No. TTD-CV-24-6030570-S, 2024 WL 4441513, at *1 (Conn. Super. Ct. Oct. 2, 2024).
[2] Id.
[3] See Connecticut General Statutes §§ 38a-307 and 38a-308
[4] Con. Gen. Stat. § 38a-307
[5] Id.
[6] Shaw, 2024 WL 4441513, at *1.
[7] Id.
[8] Id.
[9] Id.
[10] Id. at *2
[11] Id.
[12] Id. at *3
[13] Id.
[14] Id.
[15] Id.
[16] Id.