The insured’s property was damaged as a result of a kitchen fire in Fort McMurray, Alberta. The insurer retained the services of a so called expert to determine the scope of repair. The insurer retained the services of one of their preferred vendors to quantify the loss based on their chosen expert’s scope of repair. The insured paid to have the complete home gutted including ceramic tile floor in the basement.
We were retained to assist the policyholder. With our assistance the amount of loss or damage was quantified by a local contractor. A claim for the damage was asserted in a Proof of Loss for just over $500,000. Initially, the insurer’s chosen contractor estimated the loss at $350,000. After we discussed the claim with their chosen expert a new estimate was prepared that increased the cost of repairs to over $450,000.
The insurer’s position did not include the replacement of all windows and all of the stucco siding. Also, it did not include the replacement of all soft metals, electrical complete. The insurer and their experts did not think there was a need to replace all of the vinyl windows even though they elected to replace ceramic tile flooring in the basement. Also, the insurer and their experts refused to admit that all of the stucco siding needed to be replaced as all of the doors and windows needed to be removed.
Dispute Resolution was invoked. At the hearing the Umpire agreed with our position 100%. At the end of the day the amount of loss or damage was quantified at $550,000. The insurer’s Dispute Resolution Rep attempted to put his own spin on the Umpire’s award suggesting that we came out with $3,000 less than what they were offering even though we won each and every issue in dispute. As the insurer elected to listen to their rep instead of taken a common sense approach, we had to involve counsel and reengage the Umpire. After reviewing the positions of the parties the Umpire sided with us and confirmed the total amount of loss or damage was quantified at $550,000.
Also, at appraisal we were awarded over 99% of the claim for the loss of contents.
Shortly after the award was confirmed we were able to negotiate final resolution of the policyholder’s claim and exchanged funds for a Final Release.