Ohio Court Orders that “Matching” is Appropriately Determined by Appraisal

Recently, a significant decision was made in the ongoing legal battle between Cinnamon Ridge Condominium Association, Inc. and State Farm Fire and Casualty Company, highlighting the importance of understanding insurance policies and the appraisal process in claims disputes. Let’s break down what happened and what it means for policyholders.

The Background

Cinnamon Ridge Condominium Association, which represents a group of properties in Greene County, Ohio, filed an insurance claim with State Farm after a severe windstorm in May 2020 damaged the roofs of 16 buildings. While State Farm acknowledged the damage, the parties disputed the total cost and scope of repairs. This significant discrepancy led to a dispute, with the Association demanding an appraisal to resolve the disputed amount of loss.  State Farm resisted appraisal and SJJ had to make a motion before the court to compel it.

The Court’s Initial Ruling

The court initially ordered an appraisal, where the panel valued the repair cost at $162,700 and the replacement cost for uniform appearance (“matching) at $227,200. State Farm contended that its Policy does provide coverage for matching and refused to pay the award. The Court held that the Policy provides coverage for repairs that “result in a reasonably comparable appearance” as is required by Ohio Amin. Code.  Despite this, the Court found the panel had not yet determined the cost of repairs that “will result in a reasonably comparable appearance.”

The Latest Ruling: Clarifying the Appraisal’s Scope

Recognizing the need for clarity, the Association requested that the court clarify its earlier ruling and send the matter back to the appraisal panel. The court agreed, with conditions. Here’s what the court decided:

1. Appraisal Panel’s Role: The court emphasized that the appraisal panel should specifically determine whether full roof replacements are necessary to achieve a “reasonably comparable appearance,” as required by the insurance policy.
2. Limited Remand: The case is remanded to the same appraisal panel for a limited scope: to clarify whether full roof replacements are necessary under the reasonably comparable appearance standard. The panel has 60 days to provide this clarification.

 What Does This Mean for You?

This case underscores the importance of appraisals in insurance disputes, especially when there’s a disagreement about the extent of necessary repairs. For policyholders, it’s crucial to understand that:

• Appraisal is Binding: The findings of an appraisal panel are typically binding regarding the amount of loss, making it a crucial step in resolving disputes.
• Clarity in Policy Terms: The terms of your insurance policy, such as what constitutes a “reasonably comparable appearance,” can significantly impact the outcome of a claim.
• Legal Recourse: If there’s a disagreement over an appraisal, courts can compel the parties to participate in appraisal.

For any community association or individual dealing with an insurance dispute, it’s vital to have experienced legal counsel to navigate these complexities. At SJJ Law, we are here to help ensure that your rights are protected and that you receive the full compensation to which you are entitled.