Help you return to your normal lifestyle as quickly as possible.
What is an appraisal and how does the process work?
A typical HO3 policy’s appraisal language is as follows: If we are unable to come to an agreement regarding the actual cash value, the extent of the damage, or the cost of repair or replacement, either of us may make a written demand for an appraisal. Following that, within 20 days of receiving the written demand, each will choose a qualified, impartial appraiser and let the other know who they choose. An umpire is decided by the two appraisers. If the two appraisers are unable to agree on an umpire within 15 days, either of them may request that the district court judge of a judicial district in which the loss occurred make the decision. The amount of loss will then be determined by the two appraisers, who will individually state the actual cash worth and loss for each item.
The appraisers of the insured and the insurance carrier will estimate the damage and attempt to reach a consensus on the amount of loss after the appraisal clause or provision is invoked.
If the appraisers cannot come to an agreement, they will present their disagreements to the umpire. The amount of loss will be determined by an itemized decision that is approved by two of these three. This judgment will be enforceable.
Why would I demand an appraisal?
Over the insurance company’s assessment of an insurance claim, there might occasionally be a dispute. Policyholders frequently believe that hiring a lawyer is the only option to resolve the conflict. Fortunately, this is not the case. Appraisal is a method of Alternative Dispute Resolution often found in many homeowner and commercial insurance policies.
Frequently, but not always, the language will say that an appraisal is required when properly requested by the insurer or the insured. To understand your options, it’s crucial to get your policy reviewed by a knowledgeable appraiser.
Frequently, but not always, the language will say that an appraisal is required when properly requested by the insurer or the insured. To understand your options, it’s crucial to get your policy reviewed by a knowledgeable appraiser.
