Texas Reminds Insurers Of The Benefits Of ADR Appraisals

Law360, New York (January 31, 2014, 5:01 PM EST) -- Ever since the Texas Supreme Court drastically broadened the scope of appraisal in State Farm Lloyds v. Johnson,[1] insurance companies providing coverage in Texas have likely wondered if continuing to include an appraisal provision in their policy is good practice. Frankly, most in the insurance industry are starting to question whether appraisal is a valuable tool or a process run amok. Recently, however, a Texas federal court reminded us why it remains important to make this form of alternative dispute resolution available in property policies.

In Scalise v. Allstate Texas Lloyds,[2] the insured owned a home in McAllen, Texas. Allstate provided...

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