By SPJ Adjusting Services | Insurance Appraisals
Ambiguous Appraisal Awards: 5 Key Issues Presenting Challenges to Hawaii Insurance Claims
Attaining the stage of appraisal within an insurance claim is close to being the finish line for homeowners in Hawaii. Following hail, wind, hurricane, or tropical storm damage, the goal of appraisal is to resolve disputes efficiently and effectively. Open-ended appraisal results have unfortunately led to further delays, puzzlement, and low compensation.
In our practice with SPJ Adjusting, we commonly observe cases of unclear appraisal awards in Hawaii claims on the O‘ahu, Maui, Kaua‘i, and Big Island markets, especially with respect to roofing systems, discontinued products, matching claims, and storm damage. An unclear appraisal award is commonly read favorably against a policyholder by an insurer.
It is very important to comprehend how “ambiguous” appraisal awards occur, as well as how to make corrections.
Ambiguity in Appraisal Awards in Hawaii Claims: Why It Occurs
Conditional Language Generates Ambiguous Awards of Appraisal
For instance, the use of “if” language is one of the most frequent problems. The following are sometimes used in the appraisal award:
“If matching is required, the cost is…”
In the state of Hawaii, where roof materials are commonly discontinued or unavailable, such a clause can be considered dangerous. This is because the insurer may have a different interpretation that they are not supposed to match, while the homeowner has a contrary belief.
Ambiguous Awards: Missing Determinations in Appraisals
The other common problem is when the cost of an appraisal award is identified but the actual need for replacement is not clarified.
This is particularly difficult in Hawaii communities because:
Color-matching rules apply
Requirements on wind-uplift are more stringent
The suppliers of similar materials are no longer the manufacturers
Corrosion from salt air speeds up
In the absence of a determination, repairer defaults are assumed.
Inconclusive Appraisal Awards: Inconsistinates Conflictng Notes &
In roof damage claims from Kona low storms or trade-wind incidents, even slight vagueness can mean a loss of tens of thousands of dollars when carriers choose the lowest amount available from notes by hand, when there is inconclusive valuation, or when there is a vague summary.
Responses to Ambiguous Appraisal Awards by Insurance Companies in Hawaii
In cases where there is ambiguity, the insurance companies always prefer the interpretation that is most favorable to them financially. In most cases, the insurance companies do not seek clarifications from the appraisal panel but rather make partial payments that cover only a portion of the total loss.
This is a situation that leaves homeowners in Hawaii stranded, with no way to repair, replace, or even restore their homes.
This is why SPJ Adjusting urges a thorough preparation of an appraisal. The clearer the evidence, the less scope for interpretation on the part of the carrier.
What Should Happen When an Ambiguous Appraisal Awards Is Issued
An insurance company should never interpret what an appraisal panel meant.
“First, make sure your child doesn’t miss
- Ask for the return of the ambiguous evaluation result award.
An articulated award should clarify whether it is responding to a rem
Did the committee examine availability of materials in Hawaii?
Is full replacement necessary on account of code, discontinuation, or match rules?
Are the prices quoted fixed and absolute?
SPJ Adjusting is there to assist the policyholders in the state of Hawaii in ensuring that the process is followed appropriately
How SPJ Adjusting Resolves Ambiguous Appraisal Awards in Hawaii
Ambiguous appellant awards are especially detrimental in Hawaii, where there are challenges of scarce resources, logistics, and accelerated roof wear. Our experts shield our clients against the negative effects of:
Documentation in support of Replacement vs. Repair
Evidence of discontinued or unavailable materials
Effective Communication with Appraisers & Umpires
Requirement on carriers to adhere to proper appraisal procedure
“Whether your Claim is concerning roofs, wind storm damage, or sophisticated match disputes, SPJ Adjusting can ensure that the amount of the appraisal award corresponds with the actual cost of repair,”
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