Patrick King & Associates has served as appraiser and umpire in dozens of
insurance
appraisal clause files. Our experience shows that disputes can be resolved
relatively quickly, compared to the time element involved in litigation. The
costs involved in the insurance appraisal clause process are significantly less than the cost
of litigation.When settlement amounts are in dispute, the parties involved are often frustrated,
and sometimes the insured honestly does not understand the coverage limits that their
insurance policy
provides. This is the time for either party to consider resolving the
differences under the appraisal clause provision in the insurance policy. The
"appraisal clause" found in all insurance policies, was designed to
establish a procedure to allow disputed amounts to be resolved by disinterested
parties.
Each party appoints an independent,
competent appraiser. From that point
on the principals are not involved in the dispute because each appraiser must
independently access the loss. The appraisers resolve the amounts or scope of
damage. An independent, competent umpire, pre-selected by the two appraisers, stands ready to resolve any disputes between the two appraisers. To be an effective umpire, the umpire must also be impartial, willing to listen, ask questions and be of good moral
stature and reputation. An umpire that has vested or undisclosed interests or reward, other than his hourly rate, must be avoided at all costs. The appraisal clause
process is not designed to accommodate
lawyers, therefore legal fees are not incurred, and the time to settlement is minimized,
benefiting all involved.
We have successfully completed cost
effective insurance appraisal clauses in
California ,Florida, Indiana, Illinois,
Michigan, North Carolina, South Carolina, Louisiana, Mississippi, Texas,
Tennessee and Wisconsin dealing with art value, use value, historical value,
research value, age value, new value, sentimental value, monetary value,
educational value, and rarity.
