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D Wong Whey
Registered User
Username: Dwongwhey

Post Number: 76
Registered: 10-2001
Posted on Thursday, March 07, 2002 - 7:08 am:   

I rather suspect that the carrier position for either arbitration or lawsuit is due to carrier denial of the claim. Some states are now requiring (non-binding) arbitration prior to hearings on lawsuits for certain filings.

Appraisal generally is reserved for instances where coverage is not an issue but the amount of damages are in dispute.

Is this the situation in this case?
William S. Cook
Registered User
Username: Wscook

Post Number: 32
Registered: 1-2001
Posted on Wednesday, March 06, 2002 - 11:27 pm:   

You need to shed some more light on this problem yourself. What is the dispute about damage or coverage? The appraisal process is limited to amounts of damage in most states. An issue of coverage is reserved for the courts in most states. Some states may still require the parties to submit to appraisal process even if a denial has been made by insurers. You failed to identify which state the loss is in. Some states allow for a mediation process prior to appraisal. Since the arbitration and appraisal are so similar in objectives it would be unusual ro subject an insured to both procedures as an alternative dispute resolution.
William S Cook
R D Hood
Registered User
Username: Old_dog

Post Number: 10
Registered: 1-2002
Posted on Wednesday, March 06, 2002 - 10:30 pm:   

Under normal terms and conditions, the policy provides for the appraisal process before any other actions against the carrier can be taken.

Most property policies do NOT provide for arbitration, but rather appraisal.

This appraisal process must be concluded before the insured can file any legal action against the carrier.

As the previous commentaries have suggested, read the policy and take the actions as dictated by that document.
Registered User
Username: Jimlakes

Post Number: 66
Registered: 12-2000
Posted on Wednesday, March 06, 2002 - 9:55 pm:   


The best source is the policy. What does the policy say about both, if anything.

The carrier and the insured can "say" what they want, but the real policy is the contractural policy that the insured purchased and should have a copy of.

Good Luck,
Jim Lakes, RPA
National Catastrophe Director
RAC Adjustments, Inc.
D Wong Whey
Registered User
Username: Dwongwhey

Post Number: 75
Registered: 10-2001
Posted on Wednesday, March 06, 2002 - 9:52 pm:   

What does the policy say?
Registered User
Username: Bholling55

Post Number: 15
Registered: 12-2000
Posted on Wednesday, March 06, 2002 - 8:27 pm:   

Does anyone know if an insured has the right to ask for appraisal before going to arbitration. This issue has become part of St. Farms proceedure in Omaha, NE and Council Bluffs, IA.

The project is an apartment complex and the composition roof was totalled and the wood shingle mansard walls were to be repaired.

Haag has been out and evaluated the project and there report supported St Farm.

The insured wrote St. Farm and requested appraisal and St.Farm denied them and insisted that there obtions was to file a lawsuit or go to arbitration.

The project is 20 years old and the insured has full replacement cost.

Shed some light on this please.

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