What is Insurance Claim Appraisal?
The appraisal process is a means of a binding alternative dispute resolution. Most insurance policies include language known as the “Appraisal Clause.” The appraisal clause provides recourse for policy holders in the event of a dispute on their property damage claim settlement.
The process starts after the insurance company says your property damage claim is a covered loss under your insurance policy and they make a payment (or they tell you the claim is less than your deductible). If you as the policy holder do not agree with the settlement, it is time to consider going to appraisal.
The goal of the appraisal process is to reach a fair and equitable settlement agreeable to all parties.
What happens during the appraisal process?
The appraisal process starts by each party hiring their own independent appraiser. Each appraiser inspects the property and writes their own estimate on the damage. Then the appraisers try to reach an agreement on the value of the damages. If an agreement is reached, a final binding award is issued. If the appraisers can not reach an agreement, an umpire is assigned to review the claim. The umpire is a neutral, third-party mediator that acts as the judge. The umpire agrees to the value of the damages and a binding decision is reached.
Step by Step
Insurance Appraisal process
1
A dispute arises over the fairness and scope of an insured loss.
- Insurance policy language disputes generally can’t be resolved through appraisal.
2
Both the policy holder and the insurance carrier pick their own appraisers. The appraisers pick a neutral umpire.
3
Both appraisers inspect the property and write independent estimates. The appraisers then try to reach an agreement on the value of the damages.
4
If the two appraisers agree, a binding decision is reached and the award is issued. Delivery of the award is sent to the insurance carrier for payment.
- A binding appraisal award means the policy holder must accept the final award as well as the insurance company.
5
If the appraisers can’t reconcile an agreement, the umpire is brought in to review the differences. Once two out of the three parties agree to the value of the damages, a binding decision is reached and the award is issued.
- The cost of the umpire is split 50/50 between the policy holder and the insurance company. If parties can’t agree on an umpire, a local court can appoint one.
How We Work
Work Process
01
Claim Review
We will review your insurance policy language to determine if the appraisal process is available to you. We will also evaluate your property damage claim to determine how the appraisal process would benefit you.
02
Property Inspection and Estimating
We personally inspect your property damage and complete a comprehensive reconstruction estimate.
03
Negotiation
We combine the mitigation cost, reconstruction estimate, and any supplements to reach the best settlement offer you are entitled to. The reputation and respect we have cultivated with other appraisers and insurance companies results in successful negotiations and a fair outcome on your claim.