Establishing Waiver Of The Right To Appraisal In Texas

By Kristin Cummings and Victoria Vish ( October 9, 2018, 3:49 PM EDT) -- Most property insurance policies contain an appraisal provision which provides an alternative to litigation when the insurer and insured cannot reach agreement regarding the amount of a covered loss. The Texas Supreme Court has made clear that that appraisal provisions are to be enforced, absent illegality or waiver. [1] While arguments regarding the "illegality" of an appraisal provision are rare, "waiver" has been a point of considerable contention. As discussed below, the party seeking to avoid appraisal has a high burden to establish waiver. It is the burden of the party challenging the validity or enforceability of an appraisal provision to establish waiver. . . .

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