The Inventory Contents List Was Reviewed During The EUO

Posted on August 17, 2009 by Steven V. Buckman

During the EUO, opposing counsel marked Bubba's personal inventory list as an exhibit and said he wanted to go over some of the items destroyed in the fire. EUOs are a good tool for finding out information and evaluating the credibility of the insured.  On its face, Bubba's contents list probably caused an "inquiring mind" to want to know more.  There were only 9 pages, but Bubba had more handguns than socks, even counting the ones that didn't match.  Shotguns took almost 2 pages, the rifles and semi-autos used almost another 6 pages.  Most homeowners' policies have maximum limits for guns and jewelry.  The Wewoka Worldwide policy limited guns to $2,500.00.  And it was a safe bet Bubba wasn't claiming any jewelry.

I heard the "tall building" lawyer say, "You know sir that your policy has a $2,500.00 limit on your guns?"  Bubba sounded off like he was back in boot camp, "NO SIR, I bought full coverage for my guns, sir!"  I couldn't help laughing when Bubba started telling him "his guns wuz covered under the fishin' " part of the policy. I amused myself listening to the conversation until I saw opposing counsel reach into his brief case and pull out one of those big bottles of Tums. I decided to help him out just a little and said.  "I think Bubba might be talking about his inland marine floater for coverage on the guns."  Bubba's agent had helped Bubba by covering the guns under a floater.  Bubba just associated "floater" and "marine" with "fishin'".

One significant difference between an EUO and a deposition is the "read and sign" part. In deposition, witnesses commonly waive the right to read and review the transcript.  In an EUO, most insurance policies require the witness to read and sign. Bubba's going to "let me do the readin' " of his transcript before he signs.  Lucky me!

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Appraisal Clause In Homeowner's Policy Is A Useful Tool

Posted on July 27, 2009 by Steven V. Buckman

Most homeowners' insurance policies provide disputes over the value of the claim can be taken to appraisal and the amount determined by disinterested parties. The appraisal clause has its roots in the statutory fire policy addressed in earlier posts. The statutory provision provides for appraisal upon the request of either party to the claim. The insurer can request appraisal or the insured can request it. The process is one in which each side selects a competent and disinterested appraiser to determine the extent of the loss. Before the appraisers ever meet to appraise the damage, they select a competent and disinterested third person to serve as an umpire for the resolution of any disputes between the appraisers. If the two appraisers cannot agree upon an umpire, there is a provision made for appointment of the umpire by the court.

Initially, it is the job of the appraisers to try to reach an agreement as to the amount of the claim. The umpire is supposed to resolve any dispute upon which an agreement cannot be reached by the appraisers.  In many cases, the umpire is never actually utilized as the two appraisers are able to reach an agreement. In other situations, the dispute is so contentious that the decision of the appraisers and the umpire is rejected by one or both parties and suit filed.

It is important to remember in Oklahoma that the party invoking the appraisal process is usually bound by the decision of the appraisers, while the non-requesting party has the right to litigate the amount of the award.  You will want to carefully consider the aspect of the appraisal provision before actually making demand for the procedure.

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