Insurance Appraisals

The Appraisal Clause does not bind either party to its findings. The Appraisal Clause is meant to be the method for determining disputed values. If the value of an item or the costs to repair or replace it cannot be agreed upon, then the insurance policy allows an appraisal process to determine the amount of loss - or the value of the loss.  The Appraisal Clause allows for a less costly mechanism to resolve property disputes by allowing the disputes to be settled out of court. By keeping the process out of a legal and binding litigation, the result is a more timely resolution. The Appraisal Process allows for experts in the field for which the damage is associated, to represent either side.

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Most Policies Have The Appraisal Clause

If you feel your at a dead end with your insurance company and want to resolve your claim you'll need to check your policy for the Appraisal Clause. Most policies will have the provision listed under the "What to do after a loss," section or the "Conditions" section of the policy.  Even though you submit a contractor's estimate, receipts for repairs or materials, or even photos showing damages that the insurance company did not include for repairs.

Beginning The Appraisal Process

Either party associated with the policy can invoke the Appraisal Process. However, such a request must be made in writing. Each policy will have a time limit of when this can take place. Even if a claim has been closed for many years, either party can still dispute the claim and reopen for review.  Once the request to invoke the Appraisal Clause has been initiated, each party, the insurance company and policyholder, appoints an Independent Appraiser.

Choosing An Independent Appraiser

Doesn't it make sense to hire an individual who is an expert of the process in which you are about to engage? You've heard the expression, "Would you go to your auto mechanic if you needed brain surgery?" It is highly recommended to use a qualified, professional, Insurance Appraiser. This professional will already know the Insurance Appraisal Process. They will also have qualified professionals (engineers, contractors, inspectors, etc.) at there disposal to back up their analysis.

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