APPRAISAL

 

The appraisal process is a contractual process for resolving valuation issues. Appraisal provisions have been included in insurance contracts for over 100 years. Most appraisal clauses in insurance contracts provide that if the insurer and the insured cannot agree on the value of the property or the amount of the loss, either party may make a written demand for an appraisal. Each party then selects their own appraiser and the appraisers perform their own independent evaluation. Prior to the evaluation, the umpire is selected by the appraisers or the Court is petitioned to appoint an umpire. If the two appraisers can agree on the value of the property or the loss, that amount is established and the process is concluded. If they cannot agree on the value of the property or the amount of the loss, then the matter is submitted to the Umpire for resolution. The Umpire’s decision becomes binding only by a majority agreement (two of three).

The typical Appraisal clause in the policy reads as follows:

"APPRAISAL - If you and we fail to agree on the amount of loss, either may demand that the amount of loss be set by Appraisal. If either makes a written demand for Appraisal, each shall select a competent, independent appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial Umpire. If the two appraisers are unable to agree upon an Umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an Umpire. The Appraisers shall then set the amount of the loss. If the Appraisers fail to agree within a reasonable time, they shall submit their differences to the Umpire. Written agreement signed by any two of these three shall set the amount of the loss."

If you have a disagreement with your insurance company and you are in a dead lock on the scope and amount of your loss, call The Public Adjusters to discuss the feasibility of placing your claim into appraisal.  Sometimes it is not you, but the insurance company that makes the demand.  In that case, call our office and ask for our certifed appraiser.

 

MEDIATION

Mediation is the process by which a neutral third party intervenes between two conflicting parties to promote reconciliation, settlement, or compromise.
It is an effective tool for resolving almost all civil (non-criminal) disputes. Mediation provides disputing parties with the opportunity to identify and cope with divisive interpersonal issues not originally thought to be part of the dispute.

When mediation fails, then the litigation or conflict may be placed under arbitration.

During mediation the sides in conflict have part in the final decision while in an arbitration they can only present their claims but have no part in the final decision. Unlike an arbitrator, a mediator does not have the power to render a decision, and determine an award.

Although mediation is much more informal in nature and a Mediator normally encourages the parties to arrive at a compromise on their own, he doesn't pass any orders etc., as outlined above.   When an agreement is reached, the parties finally draw a settlement or compromise agreement with the help and advice of the Mediator and file it in the Court of Law for execution. The final settlement can not be challenged in a court of law except for fraud & misrepresentation.

ARBITRATION

Arbitration is commonly known as Alternative Dispute Resolution (ADR). It's a process where both sides come together and agree to follow and respect the decision of the arbitrator.  This process is fully directed by a person or authority empowered as arbitrator who has in fact the same powers of a judge but limited to the conflict in question. Arbitration is not directed to find a middle term to be agreed by the sides but it is directed to conclude and impose a final decision or resolution of the conflict in the most fair possible way following justice and after hearing and studying the versions of both sides.

It is sometimes preferred as a means of settling a matter in order to avoid the expense, delay, and acrimony of litigation. There is no discovery and there are simplified rules of evidence in arbitration.

An Arbitrator derives his jurisdiction through the agreement of the parties. He has to judiciously decide on matters coming within the scope of the agreement. He has to follow the procedural law and rules laid down in the agreement. His decision on matters in Issue is called an "Award". An Arbitrators Award can be challenged in the court of law. However in most of the Jurisdictions an Award can not be appealed to on grounds of facts.