INSURANCE CLAIMS APPRAISER, UMPIRE & MEDIATION SERVICES
SETTLE YOUR LOSS - OCEAN POINT OFFERS PROFESSIONAL DAMAGE MEDIATION, APPRAISAL & UMPIRE SERVICES
When a residential or commercial property loss occurs and a dispute is raised, the appraisal provision included in most commercial and homeowner insurance policies can serve as an alternative dispute resolution method. This helps avoid the court room or at least settle portions of the claim first.
Example Appraisal Policy Language: APPRAISAL. If you and we fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers will choose an 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 district court of a judicial district where the loss occurred. The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item.
The appraiser is tasked to assess and evaluate the disputed loss damage and provide an impartial, comprehensive damage estimate of the loss’ value. The policyholder and the insurance carrier both have their own appraiser inspect and review the damage. Should the two appraisers not come to an agreement on the value of the damage, a third appraiser will be employed to resolve the differences. The third appraiser is known in the insurance industry as an umpire and is either agreed between the appraisers or is court appointed.
Understanding the appraisal process
It is typical for an insurance company to include an appraisal provision in each policy. It can be located in the table of contents. The appraisal provision stipulates that in the event that the policyholder and the insurance carrier can’t agree on the value of the damages, either party may demand that appraisal be invoked. In some cases, both parties must agree to an appraisal. The parties select an appraiser. The two appraisers, policyholder’s and insurance company’s attempt to agree with regards to the value of the claim. A mutually selected and agreed or court appointed umpire will iron out any disputes that the two appraisers may have. An agreement signed by two of the three will set the value of the loss.
Appraisers are paid by the hour, however; some policies do allow a percentage agreement. The umpire is paid 50/50 by the insured and insurance company. A signed appraisal award followed by payment of the award is expected to close the claim if there are not any unappraised disputes still being evaluated by other parties, such as an attorney.
Insurance claims mediation process
The insurance company will have their experts at mediation, so should you!
How mediation works: Mediation is a less formal method than the court system to resolve claim disputes arising between policyholders and insurance companies. A totally neutral and unbiased third-party Florida Department of Financial Services (DFS) attorney will assist in the resolution of the disputes, however; does not dictate the outcome. In this process of mediation, both parties review, discuss and collaborate to arrive at an agreement on the challenges regarding the loss. This process normally takes place in a local mediation conference facility with private rooms.
If you are a Florida resident, you can review the programs managed by the office of Jimmy Patronis (Florida’s Chief Financial Officer). This website is an outstanding resource for more information on mediation. The Florida CFO’s website has a specific section on residential property mediation here: https://www.myfloridacfo.com/DIVISION/Consumers/Mediation/default.htm
