CONTRACTORS: REASONS TO CONSIDER INVOKING THE INSURANCE APPRAISAL CLAUSE

All to often your clients come up short when it comes reaching a fair and equitable settlement on their commercial claims. Depending on your clients circumstances they may want to consider invoking the appraisal clause in their insurance policy.

Public Adjusters have their place when negotiating claims, attorney,s have their place when negotiating claims and the appraisal clause has it's place when it comes to settling claims.

In order to invoke the appraisal clause you must have admitted damages, this means the insurance company has agreed you have damages and has agreed to pay ,but their offer is not adequate to re-build your commercial structure to pre-loss conditions.

Most business owners do not have the option to wait a long time to resolve insurance issues that can take up to a year to settle so invoking the appraisal clause may be for them.

WHY:

1. Speed of settlement
2. Faster cash flow
3. No high legal fees
4. Already have admitted damages
5. Clients keeps more of the insurance proceeds
6. Representation by appraiser with extended background

Appraisal Clause

If we and you disagree on the value of the property or the amount of the "loss," either may make written demand for an appraisal of the "loss." In this event, each party will select a competent and impartial appraiser. You and we must notify the other of the appraiser selected within twenty days of the written demand for appraisal. The two appraisers will select an umpire.

If the appraisers do not agree on the selection of an umpire within 15 days, they must request selection of an umpire by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and the amount of the "loss." If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be the appraised value of the property or amount of "loss." If you make a written demand for an appraisal of the "loss," each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal and umpire equally.

Why you were underpaid?

Due to the lack of proper training or field experience you were more than likely sent out a poorly qualified insurance adjuster who works for , and paid by the insurance company. Or they send out a independent adjuster who if they do not find in favor of the insurance company they will not receive additional assignments. In states like Illinois the adjuster that work for the insurance companies do not need to be licensed or bonded or go through any type of testing. They often state,this is the companies policy, but they don't state what is in the contract policy you signed and are paying for. If the adjuster says something that is untrue they are not held accountable in anyway in the state of Illinois.

Bottom line:

The insurance company has their adjuster, an you need your own adjuster or appraiser to protect your interest.

www.adventpublicadjusters.com