Appraisers Authority Limited to Determining Actual Cash Value of Loss

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Shawn Rees appealed an order denying his petition to vacate an appraisal award he believed undervalues the cost to repair flood damage to his house. He contended that the appraisers exceeded the scope of their authority when preparing the award. In Shawn Rees v. American Security Insurance Company, et al., 2d Civil No. B302938, California Court of Appeals, Second District, Sixth Division (July 21, 2021) the California Court of Appeal resolved the dispute.

ZALMA OPINION

Appraisers, applying their separate duty, were obligated to determine the ACV and RCV loss to the property. They do so independently and are not required to accept, as given, the agreements made by the insured and the insurer before the appraisal began. The two party appointed appraisers reached an agreement without seeking the assistance of the umpire. They did what the policy required and their conclusions became the law of the case and limited the recovery to their finding which will become a judgment.