Insurance Appraisals for Property Claims (Part 1)

Guest: Roger Howson, Claims Dispute Resolution (Seattle, WA)

Season 3, Episode 74

The first part of a multi-part discussion on the topic of insurance appraisals for property damage repairs and restoration. This is an ensemble discussion, with guests from various ends of the spectrum when it comes to assisting home and business owners with property damage claims.

Guests include:

* Main guest - Roger Howson, Claims Dispute Resolution (Seattle, WA)

* Ben Justesen, Just Right Cleaning & Construction

* David Princeton, Advocate Claim Service

* Sean Scott, Author of The Red Guide to Recovery

* Andy McCabe, Claims Delegates

* Ed Cross, The Restoration Lawyer

* Bill Wilson, Author of When Worlds Collide

According to Roger Howson, an appraisal is,

"In property insurance, the terms “appraisal” and “appraisement” refer to a private adjudicatory process created in an insurance policy by which disputes over the amount of a loss are resolved by competent and disinterested appraisers. The purpose of an appraisal provision is to provide a determination of the extent of the loss. When triggered, the appraisal process is mandatory unless the other party agrees to waive its right to appraisal."

In 1997 the National Association of Insurance Commissioners (NAIC) released The Unfair Claims Settlement Practices Act outlines and defines unfair claims practices in Section 4, which include:

"Any of the following acts by an insurer, if committed in violation of Section 3, constitutes an unfair claims practice:

A. Knowingly misrepresenting to claimants and insureds relevant facts or policy provisions relating to coverages at issue;

B. Failing to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies;

C. Failing to adopt and implement reasonable standards for the prompt investigation and settlement of claims arising under its policies;

D. Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear;

E. Compelling insureds or beneficiaries to institute suits to recover amounts due under its policies by offering substantially less than the amounts ultimately recovered in suits brought by them;

F. Refusing to pay claims without conducting a reasonable investigation;

Additional resources on this topic:

* Frequently Asked Questions (FAQs) about appraisals - https://www.icdrinc.com/appraisal_faqs

* Insurance Fair Conduct Act (IFCA) of Washington State - https://www.insurance.wa.gov/insurance-fair-conduct-act-ifca-laws-and-rules

* Unfair Claims Settlement Practices Act, NAIC 1997 - https://content.naic.org/sites/default/files/inline-files/MDL-900.pdf

* Stay tuned for Part 2 of our discussion on The DYOJO Podcast

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