Llano County insurance lawyers need to know how the Prompt Payment of Claims Act works in situations where an appraisal clause is invoked. An example is found in a Western District, Austin Division opinion styled, Thomas Cheski v. Safeco Insurance Company of Indiana.
On April 10, 2016, Cheski experienced severe weather, which damaged his home. Cheski submitted a claim to Safeco. On April 13, 2016, Safeco initially assessed the damage at a value less than the deductible. Cheski requested a re-inspection and following the re-inspection, Safeco reassessed the claim at a value of $10,363.13 and issued payment of June 9, 2016. Cheski continued to disagree and Safeco invoked appraisal on June 28, 2016. On November 11, 2016, through the appraisal process, Cheski’s and Safeco’s appraisers agreed the amount of loss was $11,844.13 and Safeco issued payment for the difference on December 9, 2016.
Cheski sued Safeco alleging various violations of the Texas Insurance Code and Texas DTPA in addition to violation of the Prompt Payment of Claims Act and breach of contract. Safeco contends its payment following the appraisal process precludes Cheski’s causes of action and moved for summary judgment.