Court Rules Against Appraisal Confession of Judgment

The Sixth District Court of Appeal affirmed that paying an appraisal award does not serve as a confession of judgment.

Updated on Oct. 20, 2026 in Insurance

Court Rules Against Appraisal Confession of Judgment

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Florida's Sixth District Court of Appeal ruled that insurance companies do not automatically face a confession of judgment when paying an appraisal award. This decision clarifies that the claims process remains functional even when disputes lead to appraisal.

Why it matters

The ruling establishes that policyholder lawsuits are not considered a necessary catalyst for payment when the insurer follows the established appraisal process. This provides insurers greater clarity regarding legal exposure during property damage disputes.

Citizens Property Insurance Corporation issued initial payments of $11,101.19 on damage claims estimated at $157,727 by the policyholders. The court noted that state law permits suits after 90 days but does not require appraisal completion by that deadline.

The players

Citizens Property Insurance Corporation

This is a state-created entity in Florida that serves as the insurer of last resort for residents unable to find coverage in the private market.

Sixth District Court of Appeal

This is a regional appellate court in Florida that hears appeals from trial courts within its jurisdiction.

The details

The court determined that because the insurer paid the appraisal award within the mandated 60-day window, the lawsuit was not the required catalyst for the payment. This decision specifically impacts how Florida courts interpret the confession of judgment doctrine in property insurance litigation.

October 2022: Policyholders reported hurricane damage to Citizens.
June 2023: Citizens issued final additional payments to policyholders.
September 2023: Policyholders filed a breach of contract lawsuit.
October 16, 2026: Sixth District Court of Appeal affirmed summary judgment.

Market Dynamics

This ruling interprets section 627.70152(4)(b) of the Florida Statutes to define the timeline for insurance litigation. It clarifies the relationship between statutory wait periods and the completion of the appraisal process within the broader insurance market.

Policyholders now face a higher hurdle for recovering legal fees in disputes where the insurer completes the appraisal process within the required 60 days. This shifts the risk profile for homeowners engaged in contested property damage claims.

The takeaway

This ruling clarifies that paying an appraisal award within the legal timeline is not a concession of liability by the insurer. Homeowners should focus on completing the appraisal process before pursuing litigation to ensure all avenues for resolution are exhausted.