Tenth Circuit Finds Appraisal Can Decide Causation of Loss Under Colorado Law

Law book open on desk in front of bookshelf

A hailstorm damaged three buildings owned by BonBeck.

November 29, 2021
Tred R. Eyerly - Insurance Law Hawaii

The Tenth Circuit determined that the Colorado Supreme Court would agree with other state courts that appraisers can decide the causation of a loss. Bonbeck Parker, LLC v. The Travelers Indem. Co. of Am., 2021 U.S. App. LEXIS 29607 (10th Cir. Oct. 1, 2021).

A hailstorm damaged three buildings owned by BonBeck. A claim was submitted to Travelers under BonBeck's commercial property policy. Travelers acknowledged that some hail damage occurred to all the buildings except for the roofs. Travelers paid $34,200 for damage to the buildings. Coverage for the roof damage was denied because it resulted not from the hail damage but from uncovered events like wear and tear, deterioration, and improperly installation.

BonBeck requested an appraisal. Travelers insisted that the appraisal would only determine the amount of loss of covered claims. BonBeck rejected these conditions and Travelers filed suit.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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