Almost yearly (if not more frequently), insurance companies face the argument that the appraisal process provided by the typical insurance policy should be expanded. As a refresher, back in 2001, the Tennessee Court of Appeals issued its opinion in Merrimack Mutual Fire Insurance Company v. Batts, 59 S.W.3d 142 (Tenn. Ct. App. 2001), where

With the proliferation of appraisal demands, the ins and outs of appraisal in Tennessee will begin to take shape through the judiciary. In Artist Building Partners v. Auto-Owners Mut. Ins. Co., the Court of Appeals recently made clear that it will not disturb the binding nature of an appraisal award.

For a little history

In the past ten (10) years, we have seen much litigation arise concerning the proper scope of the appraisal clause. Although different policies have different provisions, the “gist” of an appraisal clause can be seen in the following policy provision:

Appraisal

 

If we and you disagree on the amount of loss, either may make written