Insurance policies need to be read carefully and complied with. The reason is that most times the courts are going to enforce the insurance policy provisions. This is illustrated in a 2019 opinion from the Southern District of Texas, Galveston Division. The case is styled, Benjamin Ford, et al v. United Property & Casualty Insurance Company, et al.
The Fords had a homeowners policy with United. The Fords filed a claim with United for damage to their home resulting from a hurricane. United inspected the claim and offered a cash settlement of $7,105.74. The Fords rejected the offer and sought another inspection, after which, United made a “supplemental payment of $31,053.89. This payment was also rejected causing United to invoke the appraisal provision in the homeowner’s policy on January 18, 2018.
Two months later, the Fords sent a pre-suit demand letter to United. United responded by invoking the appraisal right again. The Fords then filed this lawsuit. United filed a motion with the court seeking an Order that appraisal be compelled.