BC Court Confirms Appraisal Umpires Can Decide Additional Living Expense Disputes
A British Columbia court has ruled that appraisal umpires have the authority to resolve disputes over additional living expenses, clarifying the scope of the appraisal process as an alternative to litigation for policyholders and insurers.
What happened
A British Columbia court has issued a ruling confirming that appraisal umpires possess the authority to decide disputes involving additional living expenses (ALE) under property insurance policies. The decision clarifies the boundaries of the appraisal process, which is a contractual mechanism used to resolve valuation disagreements between policyholders and insurers without going to court.
What it means for consumers
Policyholders in BC who face disagreements with their insurer over the scope or amount of additional living expenses coverage may now be steered toward the appraisal process before pursuing formal litigation. This can offer a faster, less expensive path to resolution, though it also means consumers should carefully review the appraisal clauses in their policies, as the process typically involves each side selecting an appraiser, with a neutral umpire resolving any disagreement between them.
What it means for premiums
No direct premium change has been announced.
Coverage considerations
The ruling reinforces the role of appraisal umpires in determining not just the cost of repairs but also the coverage of additional living expense claims. Insurers and policyholders should expect that ALE disputes may increasingly be funneled through appraisal rather than the courts, potentially influencing how claim negotiations are conducted and documented going forward. Homeowners and tenants who carry coverage for living expenses following a covered loss should familiarize themselves with their policy's appraisal provisions.