Appraisal awards are enforced via civil complaint, not via petition to the court.

The insureds' home was damaged by a hurricane in 2005, and State Farm acknowledged it was a covered loss. But when the parties could not reach an agreement regarding the amount of the loss, the policy's appraisal provisions were invoked. Following appraisal, the insureds' amount of loss for ordinance and law coverage was $29,763 and dwelling coverage was $84,090.36. State Farm paid the dwelling coverage but withheld the ordinance and law portion pusuant to the policy's provision indicating that portion is not payable until the dwelling is repaired. The insureds filed a petition to confirm the appraisal award. At the hearing, State Farm argued that no statute or rule allows an insured to file a petition to confirm an appraisal award. The trial court granted the insureds' petition to confirm. Thereafter, the appellate court reversed, holding that a petition to confirm is not authorized and the arbitration code allowing such a petition is not applicable to appraisal awards. The court remanded with instructions to allow the insureds to seek relief by filing a civil complaint.

Case Law Alert - 2nd Qtr 2012