WIND Appraiser Re-Certification® 1

Please note that WIND does not record audio or video during the workshops nor are

attendees authorized to record audio or video during any portion of the WIND Conference.

2

Please set your cell phone to vibrate and leave class if you must take or make a call.

Faculty

Rami Boaziz Stellar Public Adjusting Services, LLC

Javier Delgado, Esq. Merlin Law Group

Dan Luby Precision Advisors, LLC

John Voelpel, III Voelpel Claim Service, Inc.

Keith Womack Restoration Specialists of Florida, Inc. 3

Agenda

• Roundtable Discussion • Ethics • Trends • Legal Issues • Florida Appraiser & Umpire Licensing • Document Review

4

Appraisal Roundtable Discussion

• ‘Declaration of Appraisers’ requirement • When to select an Umpire • Vetting an Umpire - Experience, Subject Matter Knowledge, Availability, Potential Conflict, & Cost • Panel to address only the differences • Appraisal is resolution not adjustment • Newly discovered scope & hidden damage • Itemization of sub-limits

5

Appraisal Roundtable Discussion

• Depreciation • Homeowner Association Rules & Regs • Paid when incurred - Code Upgrades & ALE • Timeliness of communications • Declaring an impasse – Unilateral or Bilateral • ‘Empty Chair’ appraisal • Appraiser compensation • Responsibility of Appraiser to Umpire for payment of Umpire’s bill

6

Appraisal Roundtable Discussion

• Building • Business Personal Property • Coinsurance Valuation • Period of Restoration • Business Interruption • Extra Expense

7

Commercial Policy

Appraisal Trends

• Return of the Appraisal clause • Reversion of the ‘Demand for Appraisal’ from bilateral to unilateral • Appraisal & AOBs • Managed Repair Program - Is Appraisal a viable & beneficial option? • FYI – Possible changes to FEMA flood policies to allow for scope to be appraised

8

Florida Appraiser & Umpire Licensing SB 94: Property Insurance Appraisers and Appraisal Umpires

http://www.flsenate.gov/Session/Bill/2017/0094

Current as of December 15, 2016 and subject to change

Regulatory Agency Florida Department of Financial Services (DFS)

Applicability Personal residential claims and commercial residential claims

Effective This act shall take effect October 1, 2017 and applies to all appraisals REQUESTED on or after that date.

Florida Appraiser & Umpire Licensing Appraiser Qualifications • Appraiser must be a Florida licensed Adjuster • Company staff Adjusters can not be an Appraiser

Umpire Qualified Occupations • Retired Judge • Florida Licensed Engineer or Retired Engineer • Florida Licensed Contractor – General, Building, or Residential • Florida Licensed Architect • Florida Licensed Attorney • Florida Licensed Adjuster – Must have been licensed in Florida for at least 5 years

Florida Appraiser & Umpire Licensing Timeline Key dates for a legislative bill to become law: March 7, 2017 First day of legislative session

May 5, 2017 Last day of legislative session

May 19, 2017 Estimated date of approved bill presented to Governor for his action

June 3, 2017 Fifteen day deadline for Governor to sign bill

October 1, 2017 Effective date of bill

Appraisal Clause Examples

12

• ISO • Citizens • Florida Family • People’s Trust • State Farm • Capacity Insurance - Commercial

Policy forms and excerpts are

FOR INFORMATIONAL PURPOSES ONLY

ISO Standard Clause

13

ISO Standard Clause

14

Citizens Property Insurance Corporation Effective 02/01/2016 for New Business & Renewals

15

Citizens Property Insurance Corporation Effective 02/01/2016 for New Business & Renewals

16

Citizens Property Insurance Corporation Effective 02/01/2016 for New Business & Renewals

17

Citizens Property Insurance Corporation Effective 02/01/2016 for New Business & Renewals

18

Citizens Property Insurance Corporation Effective 02/01/2016 for New Business & Renewals

19

Florida Family Insurance Company Effective 07/22/2013 for New Business & 07/22/2013 for Renewals

20

Florida Family Insurance Company Effective 07/22/2013 for New Business & 07/22/2013 for Renewals

21

Florida Family Insurance Company Effective 07/22/2013 for New Business & 07/22/2013 for Renewals

22

People's Trust - Preferred Contractor Endorsement Effective 01/04/2016 for New Business & 03/01/2016 for Renewals

23

People's Trust - Preferred Contractor Endorsement Effective 01/04/2016 for New Business & 03/01/2016 for Renewals

24

State Farm Florida Insurance Company Effective 03/01/2014 for New Business & 05/01/2014 for Renewals

25

State Farm Florida Insurance Company Effective 03/01/2014 for New Business & 05/01/2014 for Renewals

26

State Farm Florida Insurance Company Effective 03/01/2014 for New Business & 05/01/2014 for Renewals

27

Capacity Insurance Company - Commercial

28

Capacity Insurance Company - Commercial

29

Capacity Insurance Company - Commercial

30

Main Takeaway . . .

All Appraisal clauses are not the same.

Be sure to obtain a copy

of the actual clause applicable to your Appraisal.

31

Selection of Umpire Form

32

33

Selection of Umpire Form

34

Selection of Umpire Form

35

Florida Statute 627.70151 Appraisal; conflicts of interest. — An insurer that offers residential coverage as defined in s. 627.4025, or a policyholder that uses an appraisal clause in a property insurance contract to establish a process for estimating or evaluating the amount of loss through the use of an impartial umpire, may challenge an umpire’s impartiality and disqualify the proposed umpire only if: (1) A familial relationship within the third degree exists between the umpire and a party or a representative of a party; (2) The umpire has previously represented a party in a professional capacity in the same claim or matter involving the same property; (3) The umpire has represented another person in a professional capacity on the same or a substantially related matter that includes the claim, the same property or an adjacent property, and the other person’s interests are materially adverse to the interests of a party; or (4) The umpire has worked as an employer or employee of a party within the preceding 5 years. Effective July 1, 2014

Appraisal Award Forms

36

37

38

39

40

41

42

43

44