Request a quote

Insurance coverage Q&A: Mismatched tiles & appraisal

ruck

Insurance coverage Q&A: Mismatched tiles & appraisal

When a mismatched title floor is damaged, should the appraisal include costs to replace the entire floor or just broken portions?

PC360 editor’s note: Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions.

Our insured moved a commercial appliance which damaged a few floor tiles. The commercial kitchen is a hodgepodge of mismatched floor tiles. Against our recommendations the insurer paid for the few floor tiles (workmanship), but now the insured wishes to go to appraisal on the value of the few cracked floor tiles, claiming the floor must be replaced and the entire floor redone to accommodate the repairs.

Can we limit the appraisal to the value of the small number of cracked tiles? Loss is in Georgia.

— Lousiana Subscriber

An appraisal is to be used when the insured and the insurer disagree on the value of the property or the amount of the loss, which is the situation you have here. The policy language does not describe what needs to be in an appraisal, but some states have statutes regarding such.

Matching tiles is an enormous issue and some states have specific statutes guiding practices. Courts are split on the issue. Our position has always been that unless the tiles/shingles match, you have not restored the insured to a pre-loss condition.

In this situation, however, the insured did not have matching tiles to begin with. That changes things significantly since the insured’s pre-loss condition was not matching tiles, just unbroken tiles.

We recommend reviewing the state statutes or contacting the insurance department for guidance as to rules regarding appraisals and who can dictate what exactly can be brought up during appraisal. Going strictly by the policy language, the insured is entitled to bring up the mismatched tiles, but we are unaware of any countermanding statutes.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related posts
Technology

13 Ways AI Moves Insurance Marketing Forward

As professionals in the insurance industry, we at Skyscraper Insurance understand the allure of innovation. Much like a classic car enthusiast admires shiny, powerful machines, we embrace the transformative power of technology—especially when artificial intelligence (AI) drives forward insurance marketing. AI is not just a buzzword; it represents a monumental leap in marketing capabilities. But with this powerful tool, we must ask: Are we ready to harness its full potential responsibly? AI promises to revolutionize marketing, elevating our strategies from traditional methods to cutting-edge, data-driven practices. By understanding where and how to apply AI, Skyscraper Insurance aims to refine our marketing campaigns and achieve unparalleled success. The Enduring Value of Traditional Marketing Classic marketing methods—relationship-building, personalized service, and human intuition—remain integral to insurance. Strategies like direct mail, in-person networking, and grassroots campaigns resonate deeply within our industry. However, these approaches, much like vintage cars, can be labor-intensive and lack the scalability and efficiency of modern methods. To stay competitive, traditional marketing must evolve. By integrating digital tools into classic strategies, we can modernize our outreach while retaining its personal touch. At Skyscraper Insurance, we blend time-tested methods with advanced metrics, ensuring our campaigns are both effective and enduring. How AI Powers Precision in Marketing AI introduces unparalleled precision and efficiency into insurance marketing. Think of it as the most advanced smart vehicle—equipped with adaptive technology that enhances every journey. With AI, Skyscraper Insurance can: These tools allow us to navigate marketing challenges with the confidence of a self-driving system, ensuring smarter and safer campaigns. The Evolution of SEO Through AI AI is reshaping search engine optimization (SEO), enhancing traditional practices with cutting-edge capabilities: By integrating AI into SEO strategies, Skyscraper Insurance ensures our content remains visible and relevant in an ever-changing digital landscape. Adapting for AI Platforms As AI platforms like ChatGPT redefine content discovery, we focus on: Balancing traditional SEO with AI-driven strategies keeps our content effective across diverse platforms. Finding Harmony Between Tradition and Innovation At Skyscraper Insurance, we believe in blending the best of traditional marketing with the advancements of AI. Just as a classic car enthusiast might upgrade their vehicle without losing its charm, we integrate AI to enhance human relationships and intuition. Driving Forward With Confidence As we navigate the future of insurance marketing, Skyscraper Insurance combines the reliability of traditional methods with the innovation of AI. This dual approach ensures we stay ahead in delivering exceptional service and tailored solutions to our clients. Whether fine-tuning classic strategies or adopting AI-powered tools, we’re committed to helping you achieve your goals with precision and care. At Skyscraper Insurance, #WeShareYourVisionForABetterTomorrow.

Read More
Crisis Management

California Wildfire Relief: A Collaborative Effort by Lawmakers and Insurance Leaders

California’s recent wildfires have highlighted the urgent need for action to address the growing insurance challenges in the state. With insured losses estimated at $30 billion, leaders are working tirelessly to provide relief and ensure resilience. Protecting Policyholders Amid Wildfire RisksCalifornia Insurance Commissioner Ricardo Lara has taken swift action, issuing a one-year moratorium on insurance companies canceling or non-renewing residential policies in wildfire-affected areas. Additionally, those who received non-renewal notices within 90 days before the fires are now protected.“If you’ve received a non-renewal notice between October 9 and January 7, your insurer should retain you as a valued policyholder,” Lara emphasized during a press briefing. Lara also proposed a future grant program to assist low-income homeowners in reducing wildfire risks by installing fire-resistant roofs and creating defensible spaces around their homes.“This initiative is crucial for protecting homes and building long-term resilience,” he noted. Legislative Action for Stability and Faster ClaimsCalifornia lawmakers introduced the FAIR Plan Stabilization Act, aiming to bolster the California FAIR Plan with catastrophe bonds to address potential liquidity shortfalls. Speaker of the Assembly Robert Rivas also announced plans to advance legislation that would streamline insurance claims for homeowners affected by the wildfires. The Financial Toll and Industry ResponseAccording to Wells Fargo Securities, insured losses from the wildfires are projected at $30 billion, with homeowners’ insurance accounting for 85% of those losses. High-value properties and extensive damage underscore the financial strain, as the Palisades Fire alone has burned over 23,000 acres and destroyed 4,500 buildings. Despite the magnitude of the disaster, industry leaders assure Californians that the insurance sector is equipped to handle the recovery. Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), affirmed that “all claims will be covered, whether through private insurers or the California FAIR Plan.” A Call for Resilience and ReformThe devastating wildfires serve as a wake-up call for California to rethink its preparedness and insurance strategies.“This catastrophic event underscores the need for greater resilience,” Kevelighan said. “It’s time to reevaluate how we manage risks and sustain a functional insurance market in this state.” At Skyscraper Insurance, we are committed to supporting our clients in navigating these challenges, ensuring access to reliable coverage, and fostering resilience for the future. Together, we can weather any storm. #WeShareYourVisionForABetterTomorrow

Read More
Categories
Request A Quote
Try your instant quote
Click here to proceed