“Insurance breakage” mirrors the concept of breakage in the retail sector. In retail, breakage refers to the revenue gained from unredeemed gift cards or prepaid services. Essentially, customers pay upfront for a service or product they never use, and the retailer benefits financially from this non-redemption.Continue Reading Insurance Breakage—Insurance Companies Profit When Policyholders Give Up

Nobody can remember all the stuff they have accumulated and discarded during their lifetime. When a total fire loss happens, and there is nothing left other than charred remains and memories, many insurance companies add to the emotional trauma by not paying one penny towards the personal property loss until claims forms asking for a myriad of information about the lost personal property are provided.     Continue Reading Do policyholders Have to Fill Out Personal Property Inventory Forms Following a Total Loss?

Seek Now (fka Ladder Now) is a third-party vendor to insurance companies. It has non-licensed inspectors do work that historically was accomplished by company or independent adjusters. Here is a memo from a Seek Now manager to his field inspection team:Continue Reading The Outcome Oriented Claims Culture Is Pervasive and Killing Any Good Will Towards the Insurance Industry

In the post, “How Do Judges Appoint Umpires in an Appraisal? A Case Example from Louisiana,” who did the judge appoint? I noted that:

In this case, the judge appointed an umpire who had been appointed before as an umpire and as a special master on a number of other cases. My assumption is that the judge believed that Cade was considered fair based on those qualifications.

Continue Reading Do Judges Have a Bias to Appoint Judges and Previous Umpires When Considering the Appointment of an Umpire?

Steve Badger published a proposed “Statutory Appraisal Process.” He noted on LinkedIn the following, in part:

My post last week about a proposed ‘Statutory Appraisal Process’ created a lot of discussion. Some supported the idea. Others hated it (for various predictable reasons). Everyone, however, agreed that the appraisal process is, or was at least intended to be, an efficient way to resolve disputed claims without the need for litigation.

Everyone also acknowledged that there are problems in the process that need to be corrected.

And here is my effort to address those problems……

…We are currently recommending that our clients include this revised appraisal provision in their policies. Several clients are now in the process of obtaining state regulatory approval of our proposed appraisal clause.

Continue Reading The Standard Steve Badger Appraisal Clause

How many policyholders, public adjusters, and appraisers become concerned when the judge picks an umpire who does not seem to have much experience with property insurance or the appraisal process? One reason I suggest that “all parties involved in an appraisal should try very hard to put their heads together to agree on someone they both think will be fair,” as noted in How Do Judges Appoint Umpires in an Appraisal? A Case Example from Louisiana, is that an inexperienced umpire can ruin the appraisal and cause further delays for everybody.Continue Reading What Happens if the Court Appointed Umpire Ruins the Appraisal? Is There a “Do Over?”

If your property has been damaged, and your insurance company has approved your claim, the last thing you want to do is go back and forth with your mortgage company about when and how you can receive the money. However, many home and business owners find themselves in exactly this situation: forced to wait or jump through hoops before their lender will release the money they need for essential repairs — especially when the claim is significant.Continue Reading What to Do When Your Mortgage Company Holds Your Insurance Check

A condominium made a claim arguing that unstable excavation material, which became heavy enough due to spring runoff, fell down a mountainside, causing damage to the condominium.1 The condominium made the following factual argument for coverage:   Continue Reading The Specified Causes of Loss and Falling Objects—Can Debris Travelling Down a Mountain Be a Falling Object Triggering Coverage?

Property insurance adjusters sometimes ask me whether a loss comes within the “specified perils” coverage of the policy. What does “specified perils” mean?  When one goes to the International Risk Management Institute (IRMI) website, under “insurance definitions,” the term “specified perils coverage” is defined as the following:

Specified perils coverage is an obsolete auto physical damage term.

Continue Reading What Are the Specified Perils? What Is Falling Objects?

Dear Residents of Tree Oasis,

I hope this blog post finds you in good humor, as it is with great delight that I address a matter of utmost importance to Florida residents and others residing amongst the seemingly innocent vertical beings standing tall and proud: TREES.Continue Reading Falling Objects Coverage – Are You Covered For That Tree Limb That Just Came Through Your Roof?