Most homeowners' insurance contracts contain an appraisal provision wherein either party may compel the other to submit to a binding appraisal process meant to resolve a covered claim. Often, an issue arises as to whether an insurance carrier has waived its right to appraisal, which, like any other contractual right, may be waived under certain circumstances. 

When analyzing whether the right to appraisal has been waived, it is important to understand that Florida courts treat the contractual right to appraisal in much the same way as the contractual right to arbitrate, and have consistently found that there is a strong public policy preference in favor of enforcing appraisal provisions. Prestige Protective Corp. v. Burns International Security Services Corp., 776 So.2d 311 (Fla. 4^th DCA 2001); Marine Environmental Partners, Inc. v. Johnson, 863 So.2d 423 (Fla. 4^th DCA 2003); and State Farm Fire & Casualty Co. v. Middelton, 648 So.2d 1200 (Fla. 3d DCA 1995).

In order for an insured to establish that a contractual right to appraisal has been waived, it must prove two things:

1. The insurer is aware of an existing right to appraisal.
2. The insurer actively participated in litigation or other acts inconsistent with the right to appraisal. Marine at 425.

Furthermore, Florida courts define waiver of the contractual appraisal to appraisal as the "the voluntary and intentional relinquishment of a known right which warrants the inference of relinquishment of that right." Raymond James Financial Services, Inc. v. Saldukas, 896 So.2d 707, 711 (Fla. 2005); and Marine Environmental Partners, Inc. v. Johnson, 863 So.2d 423 (Fla. 4^th DCA 2003). This definition means that an insurer must engage in litigation or other acts that are inconsistent with the contractual appraisal right before a Florida court will find that the contractual right to appraisal has been waived. Thus, the court must consider whether an insurer's acts are "inconsistent with the contractual right to appraisal."