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Category Archives: Insurance Appraisals

Bell Property Loss Consultants, LLC  /  Blog  /  Insurance Appraisals
Categories Causation, Dispute Resolution, Insurance Appraisals, Restoration Determinations

How Appraisals are Critical in Determining Causation and helping with Resolving Insurance Claims Efficiently.

When it comes to dealing with insurance claims, determining causation can be one of the most critical factors in settling disputes and getting fair compensation. Often, the cause of a loss is not immediately obvious, and there may be several factors at play that make determining causation a challenging task. This is where insurance appraisals come in – providing an independent and objective analysis of the facts to help determine the cause of a loss.

An insurance appraisal involves a thorough investigation into the details surrounding a claim, including interviews with witnesses, examination of physical evidence, and review of relevant documents. The appraiser will carefully evaluate all of the evidence to ensure that the cause of the loss is accurately determined. By taking this thorough approach, insurance appraisals can provide greater clarity and confidence in determining causation – helping to reduce disputes and minimize the possibility of future issues arising from a claim.

One of the benefits of an insurance appraisal is that it provides an objective perspective on the claim. Insurers and policyholders often have different priorities and perspectives when it comes to determining causation. By employing an independent appraiser, both parties can have greater confidence in the accuracy and reliability of the determination – leading to a more effective resolution of the claim.

Overall, insurance appraisals are a critical tool for determining causation in insurance claims. By providing an unbiased analysis of the facts, an insurance appraisal can help to resolve disputes and ensure that all parties are fairly compensated for losses. If you find yourself in a situation where the cause of a loss is in dispute, consider engaging an independent appraiser to help provide greater clarity and objectivity in determining causation.

Check out this landmark article on how vital Insurance Appraisals are in determining Causation and Period of Restoration Determinations: https://www.propertyinsurancecoveragelaw.com/2023/05/articles/court-opinion/blockbuster-new-york-appraisal-decision-impacts-causation-and-period-of-restoration-determinations/

Author bellpropertyl2
Categories Insurance Appraisals, Property Loss

Invoking Appraisal in an Insurance Loss

An insurance contract is purchased as a means of protection against financial loss. Essentially, insurance is a way to protect your property, goods or business from a loss of value.

There are many types of insurance policies, home, auto, business property, or business interruption.
Despite the wide array of policies most have a small but powerful means of settling a disputed claim.

What is an “Insurance Appraisal”?

Insurance appraisal is a form of alternative dispute resolution that will “decide the dollar amount of an Insurance claim”.  It can help both the policyholder and the insurance company.  It is often timelier and more cost-effective than litigation.

Insurance appraisal cannot address issues of coverage or causation, only cost.

Insurance appraisal is to “set the amount of loss” only.

An Example of an Insurance Appraisal Clause:

“If you and we fail to agree on the amount of loss, either may demand that the amount of loss be set by appraisal.  If either makes a written demand for appraisal, each shall select a competent, independent appraiser.  Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand.  The two appraisers shall then select a competent, impartial umpire.  If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire.  The appraisers shall then set the amount of the loss.  If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire.  Written agreement signed by any two of these three shall set the amount of the loss.”

Facts about Insurance Appraisal:

It effectively removes the decision making from the entrenched parties that cannot agree on a settlement.

Either the policyholder or the insurance carrier has the right to invoke appraisal.

It is generally more efficient and less costly than litigation.

It is binding on both parties.

Insurance appraisers can be builders, insurance agents, lawyers, or anyone competent in the damage being appraised.

The umpire in the appraisal process should rule only on the differences between the two appraisers.

An award will still be subject to regulations, state law, or policy conditions.

The Insurance appraisal process is a non-judicial means of resolving disputes.

An umpire is only necessary if the two appraisers can’t reach an agreement.

Each party must pay for their appointed appraiser. The policyholder and the insurance company share the umpire and other expenses equally between them.

This pertains only to disputes involving a disagreement in the amount of loss.

Conclusion

For both the policyholder and insurance company the insurance appraisal process can be an excellent and often cost-effective way to resolve an insurance dispute.

Author bellpropertyl2