Process of Appraisal

On November 27, 2018, in response to the catastrophic damages caused by Hurricanes Irma and María, the legislature enacted Public Law 242-2018. This enactment created the process of appraisal as an alternative informal—yet potentially binding—method of conflict resolution for damages claims.

On August 4, 2022, the Supreme Court of Puerto Rico held that Public Law 242-2018 applies retroactively to the claims associated with the damages suffered by insureds during Hurricanes Irma and María in 2017.

The process of appraisal is available for ongoing disputes even those in litigation. It can be initiated before the Office of the Commissioner of Insurance.

Each party will be responsible for appointing their own appraiser. If they cannot reach an agreement, then the two appraisers by mutual agreement will select an impartial and competent Umpire, who will review the positions and documentation of the two primary appraisers and may also do an inspection and assessment of his own. The Office of the Commissioner of Insurance has Appraisers and Umpires that have been prequalified. We can assist you in evaluating the potential candidates based on their experience, affiliations, and qualifications.

The result of the process of appraisal may be binding upon the parties if the appraiser of one of the parties reaches an agreement with the Umpire. Under the law, the non-prevailing party may seek relief before the Court and contest the decision of the Umpire.

We are available to assist you in evaluating whether the process of appraisal is right for your case and answer your questions regarding insurance claims.