Determining a scope of loss and repair needs is not always easy but it is a required part of the property damage insurance claims process.
It is easy for the insured and the insurer to disagree on the amount of damages and what it will take to put things right. In many cases, the scope of loss and the responsibilities of the insurer will be settled in court, and that is just what happened in a recent case.
A number of recent court cases have held that a scope of loss is subject to appraisal and verification and that a quality appraisal can be used to settle disputes between the insurer and the insured created by differentiating scope of loss reports during a property damage insurance claims process. While some insurers have tried to argue that the scope of loss and the scope of repairs are not subject to appraisal, the courts have ruled differently. That means property owners need to know their rights and understand their responsibilities. Whether the insured property is a small home or a multimillion-dollar investment, understanding the role of the scope of loss documentation and importance in the property damage insurance claims process is vital to the success of your claim.