A $947 estimate. A nearly $150,000 counter. On Aug. 7, 2026, a Florida appeals court clarified when an insurer can still demand appraisal.
People's Trust Insurance Company prevailed on appeal this month in a dispute over one of a property carrier's most valuable tools - the right to route a coverage fight to an appraisal panel rather than a jury.
It began as a small claim. The insurer's estimator inspected the home and put the repair cost at $947.51, below the couple's $1,000 deductible. In a coverage letter, People's Trust covered the roof but not a bathroom ceiling, and said no repairs or payment would follow until the parties agreed on an amount over the deductible, or an appraisal panel found the loss topped it.
The picture shifted later. More than two years on, the homeowners came back with their own estimate: $149,866.98. The insurer acknowledged it but did not budge. Facing notice of a lawsuit, People's Trust offered $100 to settle "without waiving its right under the insurance policy to seek legal remedies to enforce [the] insurance policy," then closed the claim.
The homeowners sued for breach of contract. People's Trust answered, raised the appraisal clause as a defense, and moved to compel appraisal. The trial court said no - the insurer's conduct, it found, had waived the right.
The appeals court reversed. Reviewing the undisputed facts fresh, it applied a simple test: did the insurer actively litigate or act inconsistently with appraisal? A settlement offer alone is not a waiver, the court held, and an insurer may invoke appraisal for the first time after a suit is filed. People's Trust raised appraisal in its defenses and moved quickly to compel - conduct the court found consistent with the right.
The takeaway for claims teams is tidy: keeping a coverage position, making a small settlement offer, and waiting for litigation do not forfeit appraisal, so long as you assert it promptly once suit is filed. The case goes back with instructions to compel appraisal.
