Date of Decision: October 27, 2021 Jurisdictional Level: Appellate CourtFull Citation: No. 2D20-3406 (Fla. Dist. Ct. App. Oct. 27, 2021), 2021 WL 4977416
Introduction
Navigating insurance claims can often be challenging for condominium associations, particularly when disputes or delays arise. In American Coastal Insurance Company v. Ironwood, the court addressed an important issue related to the right to an appraisal in insurance claims—and the obligations that must be met before that right can be exercised.
Case Background
- Nature of the Claim
Ironwood, a condominium association, filed an insurance claim for window and door replacements following hurricane damage. - Insurer’s Initial Response
The insurer, American Coastal Insurance Company, began its investigation but refused to adjust the claim. Instead, it requested additional documentation from the Association. - Demand for Appraisal
When Ironwood demanded an appraisal, American Coastal argued that it was premature. According to the insurer, Ironwood had not fully complied with the documentation requests. - Lawsuit Filed
Unable to reach an agreement, Ironwood filed a lawsuit to enforce its demand for an appraisal.
Court’s Decision
The appellate court sided with American Coastal, holding that Ironwood’s demand for an appraisal was premature. The court emphasized:
- Complete Documentation is Required
Associations must satisfy all requests for documentation and cooperate fully with the insurer’s investigation before moving forward with appraisal. - Appraisal Timing
The insurer retains the right to delay appraisal until it has received and reviewed all necessary information to assess the claim.
Key Lessons for Community Associations
- Documentation is Non-Negotiable
Respond promptly and thoroughly to any requests for documents. Incomplete or delayed submissions can stall the claims process. - Insurers Have the Upper Hand
Delays in appraisal can work to the insurer’s advantage. Associations should be prepared for possible pushback and have a clear strategy to address it. - Proactive Risk Management
Keeping organized records and understanding what documents insurers may require can help expedite the process and reduce disputes.
Why This Case Matters
For community associations, the timing and availability of an appraisal can significantly impact both finances and operations. This ruling highlights the importance of compliance and thorough preparation:
- Compliance: Associations must meet the insurer’s requirements before expecting an appraisal.
- Preparation: Proactive planning and documentation can prevent or minimize delays.
How Highlight Risk Services Can Help
At Highlight Risk Services, we specialize in helping community associations navigate the complexities of insurance. Our support includes:
- Streamlining Documentation: We guide associations in maintaining organized records and anticipating insurers’ documentation needs.
- Proactive Claims Management: We work alongside associations to minimize delays and potential disputes.
- Advocacy: We advocate for your best interests, ensuring you are well-prepared to handle insurer demands.
Contact Us
If your association is facing insurance challenges—whether it’s claim delays or uncertainty about coverage—reach out to us at Highlight Risk Services. We’re committed to ensuring you have the guidance and resources needed to protect your community.
About Highlight Risk Services
Founded in 2023, Highlight Risk Services specializes in business insurance and risk management solutions tailored to condominium associations, contractors, and developers. Our mission is to make insurance more transparent, engaging, and supportive for our clients.
Visit us at www.highlightriskservices.com to learn more.
