Analysis

Insurance Appraisal Battles To Escalate After Colo. Ruling

Law360 (June 26, 2019, 6:26 PM EDT) -- Colorado’s highest court gave policyholders and insurers alike an opening to challenge appraisal awards when it ruled Monday that appraisers in property insurance disputes are not permitted to favor one party over the other, teeing up pitched battles over what type of appraiser conduct indicates bias, attorneys said.

In a 5-2 opinion that drew a sharply worded partial dissent, the Colorado justices held in Owners Insurance Co. v. Dakota Station II Condominium Association Inc. that insurance appraisers are forbidden from favoring the clients that hired them when estimating the value of a loss. The decision revived Owners’ challenge of a $3 million...

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