Appraisal after fire damage

[Richard Goodfellow]

Just to be clear the lender or servicer did not order an appraisal. they just told the owner to get one. CeLink emailed me back stating they needed plans and would need the appraisal subject to completion of the garage. I replied asking what the purpose of the appraisal was for and also asked for a contact at HUD since I don't think one is necessary. I did not get an answer. Who cares why they need it? I do. I see no real purpose and know one actually can explain why they need it. I think they just think they need it. Hate to waste the owners money and I have other work I can do.

 

[ITVSME]

The claim may have triggered a review of the insurance limits provided and the lender wants those verified.

If values had been under-reported, a coinsurance penalty may have been applied.
This is too common, especially if insurance was originally placed using the cost approach estimate (which is not appropriate for insurance purposes).

You'll want to know if you're being drawn into a claim that's on the path to litigation.