The Appraisal Clause also known as The Appraisal Provision is found in the “Conditions” and/or the “What to do after a loss” section(s) of the policy.
This clause is used to resolve a dispute when an Insurance Company and Policyholder disagree on the amount of damage and/or scope of loss caused by a covered event and/or the amount of payment to settle a claim.
Because the Insurance Companies have a more educated understanding of the terms and conditions of their policies they usually invoke the Appraisal Clause more often than Policyholders do.
Most Policyholders don’t understand or know they can invoke the appraisal clause as well. The appraisal process does not require Public Adjusters, Attorneys or legal type processes. The Appraisal Process will allow you an avenue to resolve your disagreement with your Insurance Company.
Policyholders don’t have to wait until they feel stressed out, frustrated or in a stalemate with the adjuster or insurance company. They can invoke the Insurance Appraisal Clause any time.
However, the Insurance Company must make every effort to settle a claim in a timely manner. There is a process the Insurance Company must follow after a Policyholder advises the Insurance Company that they disagree with their findings. They can re-inspect the property, meet with contractors, or even have an engineer inspect the damages. The Insurance Company cannot immediately invoke the Insurance Appraisal Clause. They need to make every effort to resolve the claim with the Policyholder while at the same time the Policyholder can immediately invoke appraisal.
Appraisal is different than Arbitration. There are a range of alternate dispute resolution methods that can be employed to resolve a dispute between an Insurance Company and its Policyholder.
The difference between the appraisal process and arbitration, is the appraisal process is focused on the narrow issue of the scope and amount of loss rather than whether a particular claim is covered. Because arbitration is intended to address and resolve all issues through an adversarial process, the cost of engaging in arbitration is usually far more expensive for policyholders.
If you would like to speak to us about your appraisal needs, please Contact Us Here. or call (813) 940-7271 to discuss your appraisal dispute needs.