The Case for Appraisal in Settling Disputes

October 18, 2004

  • October 19, 2004 at 3:23 am
    Michael says:
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    I would have to agree that this is beneficial to both sides of the fence. It has been my experience that insurers should use this more often then they do. This will help contain loss expenses that keep on going during a dispute. The longer things drag out the more they cost.

  • October 19, 2004 at 4:06 am
    Bobby L. Stovall says:
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    As an independent property adj. (36 yrs.) I have been involved in the appraisal process from all angles,1st party, umpire, judge, but no P.A. work. I have had claim managers irritated at me as I found for the Insured. These Mgrs. are not usually well versed in property as they usually come from the liability/casualty area and are of the opinion that appraisal resolves a covereage issue (ie: denial) to be resolved. A good example is one where two staff adjusters agreed there was hail damage on a comp. roof but not enough to bother with. I allowed replacement of the roof to the Insured as the damage could not be repaired even though I agreed that it was not major damage it did shorten the life expectancy of the roof. The staff adjusters did not deny there was hail damage so coverage was not an issue, but the Mgr. was “ticked” at me. So, appraisers beware.

  • October 19, 2004 at 6:34 am
    cb says:
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    fyi

  • October 20, 2004 at 8:21 am
    LARRY GEASLIN says:
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    I too am an independent adjuster with more than 36yrs and have been handling matters under the Appraisal Provision for more than 20yrs. I have looked at the minor roof claims to complex million dollar claims involving multiple locations. Many Claim Mgrs. and some Attorneys do not understand the appraisal panel may address only damage and not coverage, hence, they become upset when an award may be agreed upon, that may cover areas the carrier feels are not covered. The appraiser must educate the Claim Mgrs. and in some cases Attorneys, that an appraisal award does not extend coverage, increase limitations, address exclusions or denials and if included within the damage award, the carrier may limit payment based on those coverage issues. There is a great deal more that could be said, but overall, the Appraisal Provision is a great way to resolve issues and much more cost efficient.

    Larry Geaslin
    713-977-9003 ext 304



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