Hurricane IKE lawsuits have changed cat. adjusting forever.
This is my opine as lawyers on both sides are making millions by blackmail, by fileing suit before appraisal. Something is broke it,s the legal system. Thats hard to change. Let all think about settling losses. An estimate in the mail is not working in Texas. The rest of the US will use this class room also.
A. Lets go back 100 years and use the sworn proof of loss, mailed in with documents to support .B. Have the homeowner sent in two contractors estimate in some estimatic form. C. Tell the insured to get a member of the National Public Adjusters Assoc. who will represent them for a reduced amout of 6% contingency contract and also on the following appraisal and this settles 90% of all losses; without appraisal being invoked.
This will save millions on loss payments and billions on legal cost from both sides.
Now lets do the storm troopers way as good and bad as it is. It did not work in Texas in IKE
Each adjuster with a license who calls the insured must have settlement authority to table top the loss. This attempt must be made. If it fails the first adjuster must get authority higher to get a second shot at settlement. If this fails the first adjuster must give up the file. The second adjuster must call the insured and ask why the second estimate was not accepted and then explain one more meeting and complete scope and estimate will be made by a new set of eye,s. However he advises he has the authority from the carrier to invoke the appraisal clause., if his best effort does not succed.
All of this would be documented by log notes, the appraisal would be a formal appraisal with sworn panels and evidence. 100% of this evidence could be used in the unfair claims-deceptive trade practice blackmail suits. This will save billions in lawyers fees, higher premium for homewners, better adjusters, REAL justice. The carriers have to make this call, but will they. I do not have a MBA. I just might not see the picture.