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Insuring Your Property Against Sinkholes

Posted by Joe Brennan | Posted in Homeowners Insurance, Insurance Advice, Insurance Claims Help | Posted on 07-24-2014

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sink-hole-illustrationInsuring Your Property Against Sinkholes

Sinkholes are depressions that form on the surface of the earth, causing large portions of the ground to either collapse or sag… SINK inward. They can occur by either man made or natural causes. Underground tunnels, mines, water systems can often collapse if they are not constructed properly or have significantly aged. The more common way in which sinkholes can form are natural. Volcanic activity, below the surface of the earth, sometimes create large holes that can collapse under the right amount of pressure. Other ways that sinkholes can appear is if there is a construction carried out above buried waste. If the waste decomposes, the construction can collapse. The most common cause for sinkholes is the sudden dry spells that can cause the water table to hollow out below the surface, swallowing whatever is on top of it.

Sinkholes in the USA

The US Geological Survey has claimed that more than 30 percent of mainland USA is susceptible to sinkholes. There are some regions that are highly active like Florida, Pennsylvania and Georgia. The geological make up of the regions are to blame. Limestone, salt and Gypsum deposits are found in large quantities in these areas and rain water, when it gets below the surface, dissolves them. This causes the seemingly solid ground to dissipate into a slushy mass. These holes are not always dramatic and massive gaping fissures hundreds of feet deep, and are normally seen as slight sags on the ground, but even that is enough to destroy a house or completely warp a built up structure.

Sinkhole insurance coverage availability

There are states that have insurance coverage for sinkholes as standard, but most states in the country do not offer such insurance. It is not necessary in some parts, but based on recent reports, a good part of south eastern USA is vulnerable. Florida is the most famous state for sinkholes and between the years 2006 and 2010, there have been over 24,600 insurance claims, which is over 15 claims every day, costing up to nearly $1.4 billion. Following this, many insurance companies have increased their premiums and some parts have reported over two thousand percent hike in sinkhole insurance.

Do you need sinkhole coverage?

If your state or region is in the sinkhole zone, then yes, you should get it covered. Perform a survey of your property and find out if your home or any part of your land is sitting above a potential sinkhole. This should be done every year after the rainy season, to be safe. Speak to your insurance agent to find out if it can be worked into your existing insurance policy.

Sinkhole Resources:

Sinkholes: there’s good and bad news …

http://www.sinkhole.org/WhatToDo.php

Sinkholes: How are Insurance Companies Responding?

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(C) Joe Brennan is President and owner/operator of Insurance Claims Group, Inc., a national independent adjusting, appraisal, and umpiring firm. We will answer your claim questions FREE as part of our FREE Insurance Advice and Insurance Claim Consulting Services.

Insurance Claims Group, Inc.
Joe Brennan
Ph: 919-669-9111
Fx: 919-573-9595
info@insuranceclaimsgroup.com

Insurance Claim Help and questions about Independent Appraiser Services is available by visiting Insurance Claims Group | Insurance Appraisal Services | Insurance Appraisal Process | Insurance Appraisal Umpire | Fire Insurance Claims

Benefits of Umpire Services in Insurance Claims

Posted by Joe Brennan | Posted in Appraisal Umpire, Fire Insurance Claims, Homeowners Insurance, Independent Appraiser, Insurance Advice, Insurance Claims Help, Insurance Dispute | Posted on 07-18-2014

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appraisal umpireBenefits of Umpire Services in Insurance Claims

 

An appraisal umpire is essentially an unbiased, competent and disinterested individual who is selected in cases where the policyholder and insurance carrier are engaged in the insurance appraisal process. An umpire is a professional who is appointed by appraisers as an impartial intervener who helps make decisions when the two appraisers reach differences. When either appraiser is in agreement with the umpire on the “amount of loss” for the damages, the decision is binding. In simplest terms, an umpire is an expert on the “amount” or “costs” for items that have suffered damage.

The Umpire ‘Clause’

The umpire clause is actually quite similar to an arbitration clause. It means that the insurance policy provides for a means of settlement or resolution of a case with the intervention of a third unbiased party. This is required when the two sides involved (the insurance company and the policyholder) are unable to agree on a fair claim amount, despite hiring independent appraisers.

Appointing An Insurance Umpire

The decision with regards to the appointment of an umpire is part of an appraisal process. It is included in most property policies, but a few insurance companies may have eliminated the clause from their policy. The cost of a lawsuit or court proceedings may actually be avoided by both parties who decide to use this process for a mutually amicable resolution of their dispute.

Most legal experts suggest that the services of an umpire possibly be utilized in every appraisal process. It is not mandatory to use their services to the fullest extent, but if hired right in the beginning, i.e. when the appraisal process is initiated, they will be ready with all details related to the insurance claim case. This makes them readily available to act in case the two appraisers are unable to settle on an agreeable amount or claim value.

Benefits To Policyholders

Many a times, the policyholders are left frustrated and with no choice but to accept the amount offered by the insurance company. It is also true that in most cases, the insurance company fails to provide a notification to the policyholders about their rights of participation in various beneficial forums such as those geared towards resolving property damage claims. So the appraisal process can actually be a very effective alternative insurance claim settlement process for the policyholder, given that it is conducted in a proper and systematic manner.

 

RESOURCES:

Texas Reminds Insurers Of The Benefits Of ADR Appraisals
Umpire’s Subject Matter Expertise

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(C) Joe Brennan is President and owner/operator of Insurance Claims Group, Inc., a national independent adjusting, appraisal, and umpiring firm. We will answer your claim questions FREE as part of our FREE Insurance Advice and Insurance Claim Consulting Services.

Insurance Claims Group, Inc.
Joe Brennan
Ph: 919-669-9111
Fx: 919-573-9595
info@insuranceclaimsgroup.com

Insurance Claim Help and questions about Independent Appraiser Services is available by visiting Insurance Claims Group | Insurance Appraisal Services | Insurance Appraisal Process | Insurance Appraisal Umpire | Fire Insurance Claims