A Florida appeals court has ruled in favor of People's Trust Insurance Company in a dispute over property damage claims related to Hurricane Irma. The court's decision reinstates the insurance company's right to compel appraisal in a case involving Farua Portuondo, who claimed damage to her home. This ruling is significant as it clarifies the rights of insurance companies and policyholders in appraisal disputes.
The case began when Portuondo reported damage to her property from Hurricane Irma, which struck Florida in September 2017. She filed a claim with People's Trust on December 7, 2018. The insurance company agreed to cover the interior damage but denied coverage for the roof damage. This disagreement led Portuondo to file a lawsuit against People's Trust on July 30, 2019, claiming breach of contract.
In response to the lawsuit, People's Trust requested an appraisal on August 26, 2019, to evaluate the damages. However, after being served with the lawsuit on September 16, 2019, the company instructed its adjuster to stop the appraisal process. This led to further legal disputes, culminating in a motion filed by People's Trust to compel the appraisal process. The trial court denied this motion on February 5, 2020, leading to the appeal.
The appeals court, led by Judge Fernandez, reviewed the lower court's decision and found that People's Trust had not waived its right to appraisal. The court noted that the insurer's decision to cover only part of the damages did not negate its right to seek an appraisal. The ruling stated, "We conclude that People’s Trust did not waive its right to appraisal by either choosing to extend only partial coverage to the losses claimed by the insured, or abating the appraisal process after the insured served People’s Trust with a breach of contract lawsuit."
Furthermore, the court emphasized that the insurer's right to appraisal remains intact when there is a disagreement over the scope of repairs and the amount of loss. The court referenced previous cases, indicating that insurers retain the right to compel appraisal even when they have partially covered a claim. The ruling also clarified that People's Trust did not engage in actions that would waive its right to appraisal by stopping the process after the lawsuit was filed.
This ruling has important implications for both insurance companies and policyholders. It reinforces the idea that insurers can seek appraisals even when there are disputes over coverage. It also highlights the courts' preference for appraisal in situations where the amount of loss is contested. This decision may influence how similar cases are handled in the future, potentially leading to more appraisals being conducted in property damage claims.
Looking ahead, the case could potentially be appealed further, although details were not available in the court filing regarding any plans for further legal action. The ruling sets a precedent that may affect how insurance disputes are resolved in Florida, particularly in cases involving appraisal rights.