Rhode Island Insurance Appraisals

The appraisal process in Rhode Island is similar here as with other states. Reliable Property Adjusting, Inc. can assist either party through this process. It is important to note that in Rhode Island an insured who does not agree with a proposed settlement must first pursue the appraisal process before any litigation.

“Unless the insurer denies coverage for the claimed loss and if the dispute is limited to the amount or extent of the loss, the parties are required to submit to the appraisal process.” Hahn v. Allstate Ins. Co., 2009- 164-APPEAL, 2011 WL 1196896 (R.I. Mar. 31, 2011).

Rhode Island also has some specific guidelines as to the actual process which is slightly different than what is spelled out in the standard H03 policy. R.I. Gen. Laws § 27-5-3 sets forth the procedure for Appraisal under a standard home owner insurance policy. The statutes states in part:

In case the insured and this company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty (20) days of that demand. The appraisers shall first select a competent and disinterested umpire; and failing for fifteen (15) days to agree upon the umpire, then, on request of the insured or this company, the umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two (2) when filed with this company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and the umpire shall be paid by the parties equally.”

Reliable Property Adjusting, Inc. is aware of these specific laws and follows the guidelines perfectly. Navigating property appraisal can feel complex, but our structured approach ensures a clear and efficient path to resolution. Here’s how we work:

• • Assignment Acceptance: We begin by accepting the appraisal assignment, representing either the insured or the insurer.
  • Appraiser Connection: Our appraiser promptly connects with the opposing appraiser. If one hasn’t been designated, we’ll advise the other party to select theirs within 20 days.
  • Umpire Selection: Once both appraisers are in contact, their first joint task is to select an umpire within 15 days. While the umpire may not be engaged immediately, Rhode Island law requires this selection before the loss review proceeds.
  • Loss Review and Collaboration: The two appraisers then meet at the loss location. They’ll meticulously review the damage details and compare estimates, collaborating to define the scope and amount of loss.
  • Agreement and Resolution: If both appraisers reach an agreement, they’ll document this amount in writing for all parties. This agreed-upon figure becomes the final, binding resolution.
  • Umpire Intervention (If Needed): Should the appraisers be unable to agree, they’ll call upon the pre-selected umpire to intervene.
  • Final Binding Decision: The umpire will review both appraisals, not creating a new one, but rather determining which of the two existing appraisals is “more correct.” The umpire’s decision is final and binding for all parties involved.

It is also important to note that in Rhode Island, the appraisal procedure is considered Arbitration and governed by the Arbitration Act, R.I. Gen. Laws §10-3. Waradzin v. Aetna Casualty and Surety Company, 570 A.2d 649 (R.I. 1990).

To help our clients navigate complex market dynamics, Reliable Property Adjusting’s owner and founder, Jeff Erekson, is available to serve as an appraiser or umpire. With years of experience in claims adjusting and negotiation, he understands the estimating software, and he has a deep understanding of critical building components. Jeff also excels at expediting resolutions. He consistently works to help all parties reach a clear understanding of the facts of each claim and the most reasonable resolution.

Contact us to learn more and find out our fee schedule.

To learn more about the in-depth legal aspects of the appraisal process, feel free to read this legal brief on the matter. We use this as a means of navigating the process. Understanding the Insurance Policy Appraisal Clause- A Four-Step Process