Appraisal Clause Example:
If “you” and ”we” fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20 days after receiving a written request from the other. The two appraisers will choose a competent and impartial umpire. If they cannot agree upon an umpire within 15 days, “you” or “we” may request that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will separately set the amount of loss. If the appraisers submit an agreement to us, the amount agreed upon will be the amount of loss.
If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss.
Each party will:
a. pay its own appraiser, and;
b. Bear the other expenses of the appraisal and umpire equally."
The only thing more certain than Death and Taxes…
Somewhere sometime whether it be at work, home, or even with a trusted friend, industry colleague or associate, you are going to disagree with someone or something. And what do you do? You pick up the phone and you call another friend, a relative or talk to a coworker, fellow associate or colleague and you get an outside viewpoint and you ask for help in resolving your disputes.
Isn’t it nice to be able to take the frustrations and emotions and set them to the side and let somebody else help settle your differences?
So now you have a dispute with an Insurance Loss. What do you do?
Well, there’s Public Adjusters, there’s Attorneys and there’s Contractors all that say they can get you to a resolution with your Insurance Carrier. In most cases this is true, but what happens when they can’t? What happens when they don’t? What happens...?
Welcome to the world of Insurance Appraisals…
Even though the process is widely known and used by the insurance carriers as a recognized process of settling claims disputes, most insured’s are not aware of the one provision within their insurance coverage policy that if invoked can bring a fast tract resolution and resolve to their disputed claims.
The Appraisal Clause; this is perhaps one of the smallest clauses in a policy, but perhaps, one of the most powerful tools available to both the Insurer and the Insured, but like many tools when they are misused or placed in the wrong hands they can become dangerous weapons which can cause even greater collateral financial peril and damages to the credibility’s of the parties to whom the process was intended to protect.
What should be, and once was, an amicable provision, the appraisal process has become an adversarial proceeding and in some cases conducted by many who truly do not have the best interest of a true and just loss settlement at heart, and whom perform outside the parameters of their duties and fiduciary responsibilities for unjust personal and financial gains.
Many appraisers act as advocates for their clients and this is true but it should not take the place of their due and rightfully expected obligations to perform under the written provisions of the policy that binds both parties and that is to act as an advocate for the Appraised loss only. Ask your self and more importantly ask your appraiser:
- Does he/she have a previous relationship with the other Appraiser? No!
- Does he/she have a previous relationship with the Insurer or the Insured? No!
- Does he/she hold an interest in the outcome of the claim? No!
- Is he/she knowledgeable and competent in the field in which they will preside as Appraiser? Yes!
- Is he/she able to fulfill the obligations of viewing the appraisal property? Yes!
- Is he/she unbiased to the participants? Yes!
- Has he/she previously acted as an Appraiser, on an Appraisal or an appraisal with the same complexities as the one in question? Yes!
- Can he/she conduct him or herself in a manner as to not be influenced by outside persuasions? Yes!
- Can he/she complete the process in a timely and expeditious manner? Yes!
If your Appraiser candidates cannot answer these questions accordingly, chances are you don’t want them holding the fate of your Appraisal in their ultimate Appraisal Award Decision.
So when the fate of you claim, your home, your business or your personal belongings, rest in the hands of your appraiser and the process as a whole, remember the credibility of your Appraisal his or her actions can be your best asset or your worst nightmare.
The CSI Group, LLC regularly performs these services for both the Insurer and the Insured. In doing so (CSI) maintains a non biased non advocate position and performs under the following Creed:
• It is our duty as Appraiser and to investigate the loss, to make our own determinations and then if needed obtain substantiating opinions, recommendations, and protocols from non biased third party outside experts. It is then, and also, our duty to obtain any and all substantiating evidence including receipts, photographs, and supporting documentation from and of “The Loss” regarding costs of any suggested and declared specialty items, finishes, contents, or items that may no longer exist due to the extent of the loss.
• We will not, and do not, appraise Cause and Origin or Policy Provisions unless the governing laws of the loss provide for such assessments; and even though we are hired either by the property owner or the carrier to perform as Appraiser, “The Property To Be Appraised” is our true and final client.
• We will not be biased, driven or tethered, as, by, to, or from, “Inclusionary Tactics” or “Exclusionary Protocols” within the procedure of formatting and preparing our conclusions or Appraisal of the loss.
• We will not be influenced within our decisions by any party as to our performance or the final outcome of the Appraisal.
• We will hold no monetary stake within the appraisal other than our standard, customary and openly transparent hourly rates.
• We will not recognize any intangible items or elements within our conclusions or appraisals merely presented through verbal representations and without substantiating evidentiary documentation.
• Upon the completion of our loss investigations, it is our duty to utilize our findings, those of any “Outside Experts”, and the supporting and substantiating evidence provided to comprise a fair and just scope of repairs to “The Property” based upon our professional expertise, and the information provided, and without ties or interest to the claim, the property owner, or the carrier.
“The Loss is the Loss, Nothing More, Yet Nothing Less”
The information provided does not demonstrate or portray any advocacy of The CSI Group, LLC towards any parties either Insurance Carriers or Insured Policy Holders or their respective representatives.