Zambendorf
Sophomore Member
- Joined
- Jul 7, 2008
- Professional Status
- IT Professional-Appraisal Related
- State
- Florida
Doing reconstruction cost estimates for the condo units isn't difficult from a technical standpoint, but it does require insurance specific tools and some understanding of the insurance policy and the condo association bylaws.
Checking to see if the reported values meet the coinsurance requirements of the policy is normally part of the carrier's loss adjuster's scope of work. I would be very (very) curious as to why they're deviating from normal procedure. The adjuster has the skill set, the tools, and all the data they need in the file: why the extra time and expense of bringing in a real estate appraiser who has none of the above? If they can't answer with something that sounds rational - I'd politely decline the assignment.
It being an active claim, you need to protect yourself on a few issues:
- licensing (are you crossing the line into loss adjusting)
- will your professional liability cover respond to non-real estate assignments (don't assume - get it verified in writing)
- what fees will be paid for follow-up with attorneys, depositions, or court time
If you accept the assignment, have the carrier specify what software they want used, and for what "cost as of" date (date of loss or date of the last policy renewal). They'll probably want the estimates run using MSB's RCT (accucoverage.com if you don't have a license), not the M&S books, and not Swiftestimator. If they want a prior "cost as of" data set, you'll have to either back-track using indexes (make them specify this is acceptable and which index they want used), or get an old copy of RCT (from the carrier's archive is about the only option).
If it's something you want to learn to do, I suggest you get assistance from a loss adjuster rather a fellow real estate appraiser. Learning on an active and ugly claim isn't necessarily a bad thing - you'll get a healthy respect for the process which can serve you well in future assignments.
Good Luck.
Checking to see if the reported values meet the coinsurance requirements of the policy is normally part of the carrier's loss adjuster's scope of work. I would be very (very) curious as to why they're deviating from normal procedure. The adjuster has the skill set, the tools, and all the data they need in the file: why the extra time and expense of bringing in a real estate appraiser who has none of the above? If they can't answer with something that sounds rational - I'd politely decline the assignment.
It being an active claim, you need to protect yourself on a few issues:
- licensing (are you crossing the line into loss adjusting)
- will your professional liability cover respond to non-real estate assignments (don't assume - get it verified in writing)
- what fees will be paid for follow-up with attorneys, depositions, or court time
If you accept the assignment, have the carrier specify what software they want used, and for what "cost as of" date (date of loss or date of the last policy renewal). They'll probably want the estimates run using MSB's RCT (accucoverage.com if you don't have a license), not the M&S books, and not Swiftestimator. If they want a prior "cost as of" data set, you'll have to either back-track using indexes (make them specify this is acceptable and which index they want used), or get an old copy of RCT (from the carrier's archive is about the only option).
If it's something you want to learn to do, I suggest you get assistance from a loss adjuster rather a fellow real estate appraiser. Learning on an active and ugly claim isn't necessarily a bad thing - you'll get a healthy respect for the process which can serve you well in future assignments.
Good Luck.