I do not agree with what the loss adjuster says

When the figure does not add up

The valuation arrives and it looks nothing like what the repair would cost. The natural reaction is to assume it is settled and the only options are accept or litigate.

That is not so. The law anticipates precisely this disagreement and sets out a procedure with specific deadlines.

What the law says

First, a duty that is often overlooked: within five days of reporting the claim, the insured must send in writing a list of the items present at the time of the loss, those salvaged, and an estimate of the damage.

If at any point the parties agree on the amount, the insurer pays what was agreed. If there is no agreement within the article 18 period, each party appoints its own expert, with written acceptance.

Here is a deadline not to let slip: if one party does not appoint an expert, it must do so within eight days of being required to by the other, and failing that it is deemed to accept the other party’s expert report and is bound by it.

If the two experts do not agree, both parties appoint a third expert; failing agreement on who, the matter can go through voluntary jurisdiction or a notary. The report is issued within the period the parties set or, failing that, thirty days from acceptance of the appointment.

And the point most people do not know: the report is binding unless challenged in court, and the deadlines to challenge are not equal: thirty days for the insurer and one hundred and eighty days for the insured, from notification. If not challenged in time, the report becomes final.

What happens to the money meanwhile

The law does not leave payment hanging during the dispute. If the report is challenged, the insurer must pay the minimum amount under article 18. And if it is not challenged, it must pay the amount set by the experts within five days.

If the insurer delays paying an amount that is already final and the insured has to sue for it, the payout is increased by the article 20 interest and by the costs of the proceedings.

An example

After water damage, the valuation received covers the flooring in one room but not the adjoining ones, which were also lifted. There is no agreement.

The insured appoints their expert and requires the company to appoint its own; if it failed to do so within eight days, it would be bound by the insured’s expert report. If the two experts disagree, a third is appointed, with thirty days to report.

Once the report is issued, the company has thirty days to challenge it in court; the insured has one hundred and eighty.