Iowa Ct Says Insurer Must Comply with Requested Appraisal Before Litigating Coverage Issues

(Topic: Insurance) Iowa Appellate Court decision (July 16, 2014).

Appeal by insurance carrier for HOA of the granting of a motion by the association to compel appraisal under the terms of the insurance policy. The carrier contended that there was an issue of “causation” that would have a direct bearing on whether or not the carrier was responsible for providing the insurance coverage and until that was resolved the appraisal process should not go forward. The appellate court found that the homeowners association had the right to trigger the appraisal process and that it was a condition precedent to any further action in the matter. When a party has demanded appraisal, that process should go forward prior to other judicial determinations. The court further found that “causation” is an integral part of the definition of loss that is to be considered by appraisers when they perform their assigned functions. Once the appraisers complete their work, the issues of coverage and causation my still be further litigated by way of a court proceeding.

See case decision: N._Glenn_Homeowners_Ass’n_v._State_Farm_Fire_amp;_Cas._Co._854_N.W.2d_67_(Iowa_App._2014)1