STORY FROM: Superstorm Sandy Insurance Litigation

Policyholders’ Failure to Seek Appraisal Bars Coverage Action, Texas Appeals Court Rules

HOUSTON — Policyholders are barred from suing the Texas Windstorm Insurance Association in connection with their claim for wind and hail damage because they did not request an appraisal within 60 days of the insurer’s denial of coverage as required by state insurance law, a Texas appellate court has ruled.

On Dec. 15, the Court of Appeals for the First District of Texas ruled that the insurer accepted coverage for the plaintiffs’ claim in full, therefore appraisal was their exclusive remedy for disputing the accepted coverage.

Randy and Debra Jones’ Lake Jackson, Texas, property was covered under a homeowners’ ...

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