appraisal

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The Appraisal Clause in an insurance policy can be triggered by either the policy holder or the insurance company when there is a dispute between the policyholder and the insurance company about how much should be paid. 

When is it used?

• When you (the policyholder) and the insurer disagree on the amount of loss or damage, not whether the loss is covered.
• For example, if you think your roof repair should cost $15,000, but the insurer offers $9,000, and negotiations fail, you may trigger the appraisal clause in your policy.
   

How does it work?

1. Each party hires an appraiser (you pick one, the insurer picks one).
2. The two appraisers select an umpire (a neutral third party).
3. Each appraiser evaluates the loss and presents their findings.
4. If the appraisers disagree, the umpire makes the final decision.
5. A decision agreed upon by two of the three (either both appraisers or one appraiser and the umpire) is binding.
    

Limitations:

• Only determines the value of the loss, not whether the loss is covered.
• You may still need to go to court or mediation if coverage itself is disputed.

Cost:

• Appraisers & Umpires are paid on an hourly basis. You typically pay for your own appraiser, and half the cost of the umpire, & the insurance company pays for their own appraiser and the other half the cost of the umpire.

Contact AICS today for your free consultation:

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