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Beltrami County official urges appraisal expansion, stronger Commerce oversight after derecho
Summary
Beltrami County administrator Tom Berry told the task force that 15,000 properties were damaged by a June derecho and that residents face steep premium hikes, multiple percentage deductibles and repeated adjuster reassignments; he urged expanding appraisal rights beyond fire and hail and strengthening Department of Commerce authority to speed fair claim resolution.
Tom Berry, Beltrami County administrator, told a Minnesota legislative task force that a June derecho damaged more than 15,000 properties in southern Beltrami County and left thousands of homeowners and small businesses struggling to recover.
"Over 15,000 properties in Southern Beltrami County were recently impacted by a massive derecho windstorm with 120 mile per hour straight line winds," Berry said, describing what he called widespread delays, inconsistent damage assessments and undervaluation of claims. He told members the event toppled "9,000,000 trees" and caused roughly "$10,000,000 in public infrastructure" and "well over $50,000,000 in privately insured property" losses.
Berry said residents reported sharp premium increases — "rising as much as 10 to 50% in just the past 2 to 3 years" — and growing use of percentage‑based deductibles that can require thousands of dollars out of pocket. He described claims-handling practices that have prolonged recovery, including multiple reassignments of adjusters and the use of new forensic consultants that, he said, can reduce insurer payouts.
A central request from Berry was statutory expansion of appraisal rights. He described appraisal as "faster, far less costly, and less formal as an alternative to a lawsuit," and said insurers are removing appraisal clauses from policies for losses other than fire and hail, effectively leaving homeowners with only litigation to resolve disputes.
Task force members pressed for statutory clarity. Insurance attorney Tim Johnson said Minnesota’s standard fire policy requirement for appraisal applies to fire and hail but not to other perils, citing the Minnesota Supreme Court’s 1986 Henning Nelson Construction decision as limiting the appraisal remedy.
Berry asked the task force to prioritize consumer‑protection fixes — including clearer claims standards, expanded Department of Commerce authority and the extension of appraisal rights to all insured property losses — so homeowners could resolve disputes without the prohibitive cost and delay of litigation.
The chair said members would continue the discussion and that staff will gather statutory and administrative details for future meetings.
