The appraisal clause is designed to be a simple and low cost form of mediation in the event of a disagreement on the value of damages; generally limited to property claims. Much like mediation, there are few written rules governing the appraisal clause. In the appraisal process each individual party (the insurer and the insured) select a competent appraiser and then the appraisers come together and select and umpire who, in the event the appraisers cannot reach an agreement, hears each appraiser’s findings and then makes a ruling on the matter. When the appraisers cannot decide on an umpire they can petition a local court or judge to assign one at random
In most states an appraiser can be anyone including an engineer, an independent adjuster, a public adjuster, an attorney, or your best friend. The appraiser should be independent and impartial from the claim process that preceded invocation of the appraisal clause. It’s important that the appraiser understands the rules and processes through which Appraisal is completed, and have some background on how insurance polices work. If an appraiser doesn’t properly understand the boundaries of appraisal Read more…
Categories: Independent Insurance Adjusting, Insurance Claim Handling Tags: adjuster, appraisal, appraisal clause, appraiser, casualty, colorado, insurance appraisal, insurance appraisal clause, insurance claim, kansas, new mexico, property, property appraisal clause, utah
There are essentially four (4) basic types of adjusters involved in the average insurance claim for property damage. The use of independent adjuster, staff adjusters and field staff adjusters varies with the risk that the insurance carrier is insuring. Public Adjusters, which are rarely needed or required in the average property or homeowner’s claim for damages, are hired by the insured (property owner). We’ll be reviewing why Public Adjusters aren’t really necessary in the near future.
Let’s start with the average property owner’s claim for common cause of loss perils not in a catastrophic situation. In small to mid-size insurance carriers there is usually a staff of adjusters based out of a home office that are commonly or duly known as carrier claim representatives. The carrier claim reps usually work out of a central office and handle the administrative portion of the claim such as gathering the proof of loss, witness information (if any), underwriting concerns, and last but not least: printing of the claim payment check (indemnification).
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