Many times, home and business owners find themselves in disagreement with the insurance company on the extent of damages or the amount of money it will cost to repair the damages they’ve experienced during a loss. When the insurance company refuses to bend, you have the option that the amount of the loss be set in what is called an INSURANCE Appraisal.

Below is a Sample of the Appraisal Clause:

The Insurance Appraisal Clause, also known as The Appraisal Provision, allows you to have two third parties separate from the Insurance Company voice their opinion on your damages, and amount to be paid. It’s been described sort of like court arbitration, but without courtrooms, lawyers, or judges.

Appraisal. If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal. If either makes a written demand for appraisal, each shall select a competent, disinterested appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon shall be the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any two of these three shall set the amount of the loss. Each appraiser shall be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire shall be paid equally by you and us.