FAQs

A: Most state statutes and insurance policies allow for insurance appraisals. Common language often found in policies state the following:

If you and we fail to agree on the amount of loss, or cost of repair or replacement, either party can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of their selected appraiser within 20 days of receipt of the written demand. The two appraisers will choose an umpire in the event the two appraisers cannot come to an agreement on the amount of loss. If they cannot agree on an umpire within 14 days, you or we may request that the choice be made by a judge of a district court in a judicial district where the loss occurred. The two appraisers will attempt to come to an agreement. If they can, there is no need to invoke the umpire. If they cannot agree, the umpire is invoked and each appraiser will set the amount of loss, starting separately the actual cash value and replacement cost value and loss to each item. The umpire will propose an award and once two of three agree appraisal panel members sign the award the appraisal has been completed.

A: Depending on the complexity of your disputed loss and the parties involved, appraisals can take anywhere from 2 to 6 months from start to finish, settlement in hand. The process can be delayed from the standard 2-3 month turn around if the appraisers struggle to come to an agreement on who the umpire will be and/or if they disagree on the amount of loss.

A: Appraisers and the umpire do not review insurance coverages or discuss coverage when making an award. It is forbidden in most insurance policies. Appraisers and the umpire review the appraisal clause that was in effect during the date of loss.

A:

– The damage is not covered under the policy.
– The policy has lapsed or expired.
– Insufficient documentation was provided to prove weather-related events caused the damage.
– The insured failed to take reasonable preventative measures to protect their property from weather events.
– The insured is not in compliance with the terms of their insurance policy.
– The claim amount is more than the policy’s coverage limit.
– The damage is due to vandalism or other criminal activity.
– The insured failed to report the damage in a timely manner.

A: Every loss varies therefore there is no property loss that is the same. Many of the appraisals we perform as the appraiser or umpire are hail and wind although there are many covered perils dependent on the policy in place. It should be stated that many states differ as far as if any appraisal statutes or case law exist although every appraisal should start by reviewing the appraisal clause that was in place during the date of loss.

It is also the responsibility of each party to provide any and all documentation that they would like the appraisal panel to review. If information is missing because the panel has not been provided it, often it cannot be reviewed or entered into evidence at a later date. Most umpires require all information to be submitted at least one to two weeks prior to the appraisal inspection, if one is scheduled to occur.

Either party can become overwhelmed by the appraisal process if they are not familiar with it. The below list is not exhaustive, as either party can provide whatever information to the panel that they would like to share. This list was created after we received many questions about what the appraisal process is and what documents are sometimes provided.

Every claim is unique and different; therefore, you should provide whatever documentation you feel is necessary depending on whether the claim involves hail, wind, fire, smoke, water, business interruption, or other type of loss. Whatever documents are provided by both parties are shared with the entire panel so that the appraisal panel can come to a fair and reasonable award.

A copy of the Demand for Appraisal from the party that demanded appraisal, and the response from the other party, if one was provided.

We ask that the Client gather and provide the other appraiser’s contact information once appraisal has been demanded. There are times when the opposing appraiser does not contact us in what we feel is a timely manner, and this is often where an avoidable delay occurs. Once we have their contact information, it allows us to take the lead on communication and manage the process more efficiently and notify Client if we are not receiving a timely reply.

A written summary of the dispute to help the panel better understand the issues. Please outline areas of agreement and disagreement. Provide any documents supporting your position and any documents from the other party if they have been provided to you. The appraisal panel will complete its own independent review, although understanding each party’s position is helpful.

The most recent scope of work and estimate from each party. It is often helpful to see all scopes of work and estimates from both parties, as sometimes there are numerous scopes of work and estimates throughout the claim process before appraisal was demanded. Pricing can be established through a variety of methodologies. Some appraisal panels use industry software such as Xactimate, while others may rely on market research, contractor quotes, published cost data, or professional experience to determine repair or replacement costs. If applicable, please explain your methodology regarding how you established your pricing and include any supporting documentation such as quotes, invoices, cost studies, or other relevant materials.

Before any onsite inspections occur, both parties are encouraged to document all areas of concern to ensure the appraisal panel is aware of all disputed items and nothing is overlooked. Parties often use blue painters’ tape, sidewalk chalk, or similar markers. In most situations, once the appraisal has been signed by two of three panel members, it cannot be reopened, and the only potential recourse, if any exists (which is unlikely), is litigation. We are not attorneys, and this is not legal advice. Please discuss with an attorney if you have additional questions.

If prior claims have been filed on this property, please provide a summary and any relevant documents describing what work was completed and/or not completed, along with any scopes of work and estimates from those claims.

Please provide a complete set of photos showing all areas of the property, including both damaged and undamaged areas. Photos should include both distant photos showing context and closeup photos clearly identifying areas that you are stating are or are not damaged. A comprehensive photo set allows the appraisal panel to prepare in advance of any potential onsite inspections or hearings.

Measurement reports, if applicable (computer generated or hand measured).

For properties with multiple structures, documents should include maps and/or cost breakdowns by building to allow the panel to easily understand scopes of work and estimates on a per building basis. The panel may request clarification if needed.

We feel both parties have the right to attend any onsite appraisal inspections, or to have representatives attend on their behalf. Representatives may include, but are not limited to, adjusters, contractors, engineers, building consultants, meteorologists, or attorneys. This is our opinion, although not all states, jurisdictions, or panels feel this is appropriate. Our opinion is that if either party wants to attend, we encourage it, along with any experts or others that they would like to be present. Most appraisals include an onsite inspection, though not in every case, as each appraisal is unique. Attending the inspection allows parties and their representatives to identify damage, discuss repairs or replacements and associated costs, and answer questions from the appraisal panel. If representatives cannot attend due to scheduling conflicts, they may provide written statements or reports to the panel for review.

Where repairs or replacements have already been completed (in part or in full) and pricing is disputed, please provide copies of invoices, receipts, and written explanations describing the work performed, reasons for that work, and associated costs. Before, during, and after photos are helpful for the panel to review and consider. Copies of paid checks and affidavits are helpful though not required. Please understand that while this information is helpful, it does not obligate the appraisal panel to agree with the work performed or its associated costs.

Any product identification or lab reports.

If product availability affects the dispute, please have both the existing product and proposed replacement product available onsite for the appraisal panel to review. If there is a concern about removing a product because it has not been approved yet, please provide a statement in your initial summary letter of the dispute and the reasons why. Some panels do not want to return to the loss location and only agree to conduct one inspection. Case law may play a factor as well. You do not want the panel to be surprised that the information to support your opinion, whether for or against making a repair or replacement, is not available in a report, or that you do not have an expert in attendance or are not present yourself to explain why your position is what it is.

The appraisal panel generally prefers comprehensive documentation, as additional information helps the panel better understand the dispute. While all submitted materials are reviewed, the panel’s decision is based on its own independent and unbiased determination once two of the three panel members reach an agreement.

If repairability is a concern, whether your position is for repair, for replacement, or against either, it is suggested by most panels that you support your position with documentation explaining why you feel that way.

We prefer to begin interviewing umpire candidates after all documentation has been received from both parties. This approach allows both appraisers to agree on a qualified, impartial umpire whose experience and credentials are appropriate for the specific requirements of this appraisal.

If entry to any locked gates and/or interior of the residence is required, the property owner or an authorized representative must be present. All pets and other animals must be secured in a separate area during the inspection and hearing.

Please advise by email at the time of this agreement being executed if any additional equipment is required to complete the on-site inspection and hearing. Client acknowledges that certain equipment or accommodations may be required to perform a site inspection, which may include but is not limited to scissor lifts, ladders, personal protective equipment (PPE), or other specialized tools. Such items are not provided by Appraisal Resolution and must be supplied by the Client when requested.

A: Demanding appraisal often does not stop or toll any insurance policy requirements therefore both Parties must continue to follow all requirements. Often there is a section in the policy titled, “Duties After Loss” which describe those requirements.

As an appraiser or umpire it is not our responsibility to track or provide guidance on those requirements as our scope of work is limited to following the appraisal language which is in the policy during the date of loss.

This includes but is not limited to reviewing the policy in place during the date of loss and confirm any deadlines that apply to completing repairs or replacements. If it appears that the work may not be completed within the required time frame both Parties can discuss the possibility of amending the policy by way of an extension. If that is not possible we suggest you reach out to your legal counsel for any further questions.

In this section there often is a requirement for a Proof of Loss to be submitted. The policy will dictate any specific requirements although it often requires a list of items that are damaged, a price to repair or replace those items and a signed and notarized document stating that no fraud was committed. Without completing a Proof of Loss the policy is often not being followed and any Demand For Appraisal may not be able to move forward with that process.