Appraisal Award Deductions: Ford v. American Security Insurance Co.

Recently, the United States District Court for the Southern District of Florida ruled in favor of the insurer on its motion for summary judgment, finding that there is no genuine issue of material fact that deductions pursuant to policy provisions, prior payments, and deductibles on an appraisal award are not a breach of contract. Following Hurricane Irma, an insured submitted a claim to the insurer for damage. The insurer accepted coverage for the roof and issued payment; the insurer denied part of the claim for purported damage to the garage that was left unrepaired from a prior, paid claim. The insured submitted an invoice that the roof was repaired for $14,000. The insured then claimed that $55,707.42 was necessary for repairs and demanded appraisal. The umpire issued an award for $62,501.85, which included $36,799.78 for the roof and $4,299.07 for the denied, previous damage.  The court found that the insurer was correct to deduct prior payments and adjust for those portions that were denied based on terms, conditions, and exclusions of the policy, and did not owe for any additional amounts.