Using the policy language in a disputed insurance claim.
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.
The above is the most common wording taken from a typical homeowner’s policy. It’s generally the same in most property coverage forms though the wording can vary slightly.
What is an Insurance Appraisal? Is it good? Is it bad? Is participation mandatory?
The simple answer is yes.
When properly invoked during a disputed property insurance claim, it is often the most efficient way to close the claim. Fairly.
What constitutes “properly invoked”?
First, there needs to be a written dispute over the amount of loss. Two competing valuations of damage or estimates for repair.
Have you been properly documenting your costs, and have you been submitting your paperwork in an organized and concise manner?
Are there challenges and pitfalls to insurance appraisals? Yup. For instance, it’s generally binding on both the insurance company and the policyholder. An Appraisal Award carries much weight, and courts have traditionally shied away from overturning one for any reason other than corruption. You will be forced to live with the decision of the Appraisal Panel.
The Appraisal Clause in your policy does not specifically say that participation is mandatory. Still, if your insurance company invokes the Appraisal, it would be best to seek the services of an experienced and competent Insurance Appraiser.
As the policyholder, you can invoke the Appraisal Clause, and provided you have been generating the documentation to show the dispute over the amount of loss; your insurance company would be contractually bound to participate. Unless the policy language gives them an out, for instance, stating that the appraisal needs to be mutually agreed to rather than by demand.
Check the Appraisal Clause in your policy and contact a qualified Appraiser. Perhaps this method of closing the claim would work for you.