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Bill Hill
USA
10 Posts |
 Posted - 12/31/2003 : 10:17:35
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Here is a little fuel for the fire. Thought you had heard of it all?
When I arrived in San Diego recently to work some wildfire claims, I was given a document(memo) addressed to "ALL SOUTHERN CALIFORNIA CAT ADJUSTERS". It was prepared by an individual purported to possess the following qualifications J.D. C.I.C. Supervisor/General Adjuster. With respect to handling dwelling claims, the following guidelines were offered - - "When dealing with a TOTAL LOSS or constructive total loss, the valuation of the loss for Initial payment by the carrier in California is Fair Market Value (California court decision) and not R.C. less depreciation. FMV is based upon site value on a comparable basis with improvements prior to loss and then residual value after loss. The reduction of value is FMV. R.C. claims are handled on a like, kink and quality basis for rebuilding".
Has anyone ever handled a dwelling claim on this basis? My first impression was that what was needed was a real estate appraiser not adjuster and secondly, how does demo and cartage figure into the equation? Sure I've been called upon to bring in real estate appraisers on fire claims but usually when the fire was suspecious and only to support some theory of criminal motive not claim valuation(I always that was a waste of time and money too).
Anyway I thought I would offer up the foregoing for whatever discussion it might foster. |
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jlombardo
USA
212 Posts |
Posted - 12/31/2003 : 14:44:23
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| Make friends with a Real Estate Broker....Quickly....... |
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Ghostbuster
476 Posts |
Posted - 12/31/2003 : 17:39:27
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Yet, they continue to send fresh meat adjusters into that slaughter house...fascinating!
Let's flip this around, did the carriers at first request only heavily experienced people for the fires, only to have to accept trainees later? Or, did they just open the doors and say, 'C'mon down'? |
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trader
USA
236 Posts |
Posted - 12/31/2003 : 18:04:39
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| Day rate is great for C'mon down types. |
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Johnd
USA
110 Posts |
Posted - 12/31/2003 : 20:59:47
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Anyone who would expose themself, and their E&O carrier, to this kind of fruit and nut side show for the pittiful day rate that is being paid, deserves the pain and agony that they will suffer later at the hands of the California shark attorneys and the state insurance commision.
I have many friends here in Arizona that are sitting this one out. the general feeling is too much exposure and too little pay. That Ghost, may be one of the reasons that there is so much "fresh meat" being prepared for the big BBQ.
PS: Jim Flynt, you old coot..... HAPPY BIRTHDAY !!!
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John Durham
sui cuique fingunt fortunam |
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Catmandale
USA
67 Posts |
Posted - 01/01/2004 : 11:47:21
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Bill,
The California case is Jefferson v Alameda County, but I was unable to locate a link with a Google search. The case goes back to the 70's.
With high land values, the FMV component of the total value of an insureds property can seem out of whack. Explaining a $90,000 FMV payment on a $500,000 property can be a challenge. [:I] Had to do that very thing on the Pasdena fires in the early 90's.
Determining FMV by appraisal can be difficult as well. You must pull out the value of the bare land from the total market price for the property. Finding bare lots to use as a comp can be problematic in an area that has been built out for 25 years. So what do they do...one way is to take the value of the building (RCV less depreciation?) from the total property value to arrive at the lot value...seems like a circular argument doesn't it?[xx(]
Not all carriers are using the Jefferson approach, some are instead opting to pay the stated value of the insurance coverage on the home.
The upside to an event like the California Fires is that you have an opportunity to use your skills and expertise to put people back together who have had what is truly a life changing event.
Dale Strain
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"When we thought that we had all the answers,
suddenly all the questions changed."
Mario Benedetti (1920); Uruguayan writer.
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Edited by - Catmandale on 01/01/2004 11:49:54 |
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JimF
USA
1014 Posts |
Posted - 01/01/2004 : 13:18:25
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| "Generally speaking" the lot value should be around 20% of the appraised or market value of a home. This is not set in stone but it is not a bad "index" to checking value. |
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JimF
USA
1014 Posts |
Posted - 01/01/2004 : 13:23:04
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BTW Happy Birthday To An Even Older Coot John Durham with whom I share a birthday as a New Year's Day baby.
Our Thanks to all of you for starting our birthday celebration all across the land a day early and taking the day off on our birthday. Hope ya'll enjoy it as much as we are!
January 1 = Old Coots Day.
HAPPY BIRTHDAY JOHN DURHAM |
Edited by - JimF on 01/01/2004 13:25:14 |
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Fire Claims - Southern California
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