Appraisal Process Tolls Contractual Suit Limitation Period Even For Non-Covered Claims

The Eleventh Circuit Court of Appeals recently held that, under Georgia law, an appraisal process tolled a commercial property policy’s two-year contractual suit limitation period even for non-covered claims.

In Omni Health Solutions, LLC v. Zurich Am. Ins. Co., No. 19-12406, 2021 WL 2025146 (11th Cir. May 21, 2021) (unpublished), the insured filed a property insurance claim with its insurer, reporting hail damage to the roof of its medical facility in Macon, Georgia, and water intrusion.

The policy required the insurer to give notice of its intentions with respect to a claim within 30 days of receiving a sworn proof of loss.

Following a protracted appraisal process, the insured sued the insurer in Georgia superior court for breach of contract and bad faith.

In its first count, the insured contended that the insured breached its policy obligation by failing to timely make a coverage decision.