By SPJ Adjusting Services | Insurance Appraisals
El Paso Insurance Appraisal Disputes Explained: Large losses in insurance policies regard appraisal as a swiftest option to arrive at a settlement. But as proved in a recent high-profile case, appraisal may go sour even if the award is huge in size, if it does not go along with the terms of insurance. This becomes crucial in El Paso, TX, since storm claims are common there.
In SPJ Adjusting, we often notice that cases of appraisals arise following hail storms, windstorms, flood damage, and damages to roofs in the region of West Texas. Though appraisals are created to ascertain the extent of the loss that has occurred, it is completely dependent upon the fulfilling of obligations by both sides.
El Paso Insurance Appraisal Disputes : What’s More Important, the Appraisal or the Dollar Value?
Usually, the insurance contract calls for each party to choose an appraiser to make his or her own determination of the value of the claim. If there is a difference, an umpire will make a determination and will not rewrite the claim from scratch.
In the recent case that has attracted national attention, it has been held that there was a failure in this structure. In the case, the appraiser did not give a clear extent of the loss but merely supplied data on the price and ideas regarding the restoration. This forced the umpire to carry out a reconstruction that the policy did not cover.
This is an important consideration for Texas policyholders. Appraisal awards will be protected only when the appraisal clause is complied with in the exact manner.
HOW THIS AFFECTS EL PASO INSURANCE CLAIMS
El Paso, in relation to appraisal, is commonly cited in cases concerning:
Roof replacement on a large property
Commercial Hail and Wind Losses
Multi-building apartments or condominia properties
Flood-induced structural damage
Rather
This could result in a situation where the insurance companies contest the entire award if a scope and amount are not fully articulated by the appraisers. This could lead to a situation where there is delay for months and even years, and the entire process has to be repeated with a new panel of appraisers.
Appraisal vs. Arbitration: In Texas Courts, It Is All About the Contract
When
Though Appraisal Disputes may closely resemble arbitration, the courts of Texas strongly stress the following:
Appraisal Disputes is a contract provision-driven process and not statutory in nature. This implies that courts primarily focus on whether the policy terms were satisfied and not whether the results are equitable.In the view of SPJ Adjusting, this reemphasizes the necessity for independence, record-keeping, and strict compliance with the terms of the policy. An award is only as good as the process that leads up to it.
Role of SPJ Adjusting in Upholding Appraisal Integrity
At SPJ Adjusting, we offer the following services to property owners, builders, and insurers in the El Paso area and throughout the country:
Insurance Appraisal Services
Neutral Umpire Services
Scope and pricing validation
Scope validation:
Adjuster assistance in dispute claims
As discussed earlier, the
“Our purpose in all of this is rather straightforward: to ensure that our appraisal process is defensible, complies with our policies, and will hold up under judicial scrutiny Appraisal Disputes
Key Takeaway for Texas Policyholders
Texas
The value of an appraisal award a large or otherwise substantial one can still be overturned if appraisers fail to comply with rules that the policy establishes. Within the state of Texas, often in the climate of claims that in El Paso are fueled by the force of the storm, process errors will nullify the value of all the hard work that has been accomplished. If you are thinking about an appraisal or are actually in an appraisal, it is a time when expert advice is needed as much as ever before
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