Insurance companies rewrite standard appraisal language in many states where this is allowed. We have recently received many inquiries about these newfound contractual provisions. For example, one from a Colorado form sent to us indicated that appraisal could only occur if both parties agreed to the appraisal.
In the absence of laws or regulatory prohibitions, insurance companies can write insurance contracts as they wish. This includes changing the standard language of assessment, the process of assessment and what can be assessed.
The trend is for insurance companies to rewrite standard appraisal clauses, and most insurance departments approve them. Those considering invoking valuation should read the valuation regulations carefully.
I warned about this State Farm New police filing in California should apply to everyone in the property insurance industry – one example is the new appraisal language. Ed Eshoo explained how these provisions may be illegal in states with a standard fire policy in State Farm̵7;s assessment regulations violate the standard fire policy.
Today’s thought
Some people don’t like change, but you have to embrace change if the alternative is disaster.
– Elon Musk
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