“WHAT IS THE APPRAISAL PROCESS?”
If the insured (Policyholder) or insurer (Insurance Company) disagree on the value of the property or the amount of the “loss,” either may make a 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 “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:
1) – Pay its chosen appraiser;
2) – Bear the other expenses of the appraisal and umpire equally.
This has been the secret weapon of Public Insurance Adjusters and Attorneys. Since 2013-2020, L.A. Public Insurance Adjusters performed over 500 appraisals for attorneys throughout Texas. Mr. Ramirez, founder of L.A. Public Insurance Adjusters held “high standards” in the Construction Industry certified in Occupational Safety and Health Administration (OSHA), Master Builder w/ National Association of Home Builders, Residential Building Inspector w/ International Code Council, over 95% end up in-front of an Umpire.
During our practice in Texas, the majority of the Judges and Attorneys that were Court Appointed Umpires were familiar with construction and even had their own personal experiences, but there were some that where unfamiliar of the Umpire Process and their duties, treating this process as if it was mediation (Split the baby down the middle) or arbitration (Offers on the table, who is going to take it?), this is not determining the actual amount of loss and is unfair to the insured offering substantially less, taking away what has already been agreed, over depreciating, etc, when both appraisers are to separate their differences and submit their differences to the umpire and an award should be based what has been paid and our differences. Sometimes appraiser lockup/lacks communication, preferred vendors estimates games, bias engineers report, causation or coverage’s or limit of liability issues, inexperience with a Court Appointed Umpire, what happens when all parties come to impasse, appraisals get set aside, this can be challenging for the novice. In many cases, the court will force both parties to enter into the Appraisal Process (binding) to comply with the terms of the policy agreement, before entering mediation (non-binding) and in other states such as Florida mediation may be accepted and insurer bares all expense. For the late bloomer attorneys, most spin their heads stuck getting the go around in mediation with $7,000-15,000 offers from the carrier, than later find that working with L.A. Public Insurance Adjusters we are known to increase settlements, mostly due to lack of a supporting documents, thorough inspection, detail estimating, depreciation and placing a proper value on the damages for a fair market amount.
What we are noticing is that the Insurance Companies/ Defendants Councils normally invoke Appraisals, now we are seeing the tables turning and many Plaintiffs Councils invoking Appraisal Process as they starting to have belief in the Appraisal Process.
Appraisal and Umpire fees is separate from Public Insurance Adjusting and is an upfront cost, normally based on the square footage of the residential dwelling and large commercial are negotiable. Appraisers are to be impartial and disinterest of the outcome of the award, by having a percentages fee base (insurance proceeds) of the outcome is not being impartial.
APPRAISER PROCESS – (TIME & FEES)
Standard Appraisers Process normally takes an additional 90-180 days after the Public Insurance Adjusters Process (during a natural disaster, major event, may extend beyond 6 months). Due to the high demand with “Houston Explosion”, L.A. Public Insurance Adjusters has reduced performing as Insurance Appraisers.
Residential/ Commercial
- $1 per SF
- $75-150 – (Content Inventory/ Estimating Per Hr.) It’s recommended that the insured inventory their content (list/ photos/ receipts)
Apartments
- $500 (+) – Roof & Exterior Inspection – (Per Building/ 24 units)
- $150 – Interior Inspection – (Per Unit)
- $150 – Estimating – (Per Hr.)
- $150 – Umpire Meeting
UMPIRE PROCESS – (TIME & FEES)
Umpire Process normally can be completed within 30 days, depending on the umpires schedule. Most Court Appointed Umpire Fees are approximately $2,000-3,500 ($250-500 per hour) for a standard 2,000-5,000 sf property (email, prepare file, review both sides, scheduling, traveling, on-site inspection, umpire office for meeting, final review) and the fees are to be split by the insured and insurer and paid prior to the Umpire meeting. In some occasions, Umpires like to review both sides, meet at the property and makes his ruling base on the Appraisers Estimate, this is also been a successful process. Xactimate estimating software that is based on fair market rates. Be aware of preferred appraisers/ contractors/ engineers games, Appraisers should know how to use standard industry estimating software for basic restoration repairs. (Antiques, Jewelry, Specialties items may need to be evaluated by a specialist in that field.)
* Insurance Appraiser & 1/2 Umpire Fees are upfront and traveling fees outside city limits may be included
