An appraisal clause is a clause or paragraph found in most but not all insurance policies. It is designed to be a way of reaching a settlement when there is a dispute over the amount of a loss between you and your insurance company and can be invoked by either party.
Resolving Disputes over Loss Amount: Understanding the Process of Invoking an Appraisal Clause
The process of invoking an appraisal clause, as described in the Conditions section of most homeowners or business owners policies (BOP), provides a mechanism for resolving disputes over the amount of loss. Here’s a further expansion on how the appraisal process works:
How Does the Appraisal Process Work? A Closer Look at Resolving Claim Disputes
In the event that you and your insurance company fail to agree on the amount of loss, either party has the right to demand an appraisal of the loss. This process is designed to bring in impartial parties who can assess the damages and reach a fair and equitable resolution.
Upon receiving a written request from the other party, both you and the insurance company have 20 days to choose a competent and impartial appraiser. It is crucial to select appraisers who have the necessary expertise in assessing the specific damages related to your claim. These appraisers will work independently to evaluate the losses and determine their respective amounts.
The Role of the Umpire: Reaching a Final Decision on Loss Amount
Once the appraisers have completed their assessments, they will come together to choose an umpire. The umpire serves as a neutral third party who will only be involved if the appraisers cannot reach an agreement on the amount of loss. If the appraisers are unable to select an umpire within 15 days, either party may request that a judge of a court of record in the state where the “residence premises” is located make the selection.
The appraisers will then separately set the amount of loss based on their evaluations. If they are able to reach an agreement and submit a written report to the insurance company, the amount agreed upon will be considered the final amount of loss. However, if the appraisers fail to agree on the amount, they will present their differences to the umpire. A decision agreed upon by any two of the appraisers and the umpire will ultimately determine the final amount of loss.
Shared Responsibilities and Cost Allocation in the Appraisal Process
It’s important to note that invoking an appraisal requires both parties to bear certain responsibilities. Each party is responsible for paying its appointed appraiser, and the expenses of the appraisal and umpire are typically shared equally between you and the insurance company. This allocation of expenses ensures a fair and balanced process.
Faster and Cost-Efficient Resolution: Leveraging the Appraisal Process for Claim Disputes
Invoking an appraisal can be a beneficial option when there is a pricing dispute, as it offers a faster and potentially lower-cost alternative to protracted litigation. It provides an opportunity to settle claim disputes by bringing in independent experts to evaluate the damages objectively. By resorting to the appraisal process, you can work towards a resolution that is fair and satisfactory to both parties, saving time, effort, and potentially avoiding the need for expensive legal proceedings.
Independent Insurance Appraisal Clause Adjusters: The Benefits of Working with a Public Adjuster
Utilizing a public adjuster as your appraiser when invoking the appraisal clause offers numerous benefits. Public adjusters possess extensive knowledge of insurance policies and claim processes, ensuring that your rights are protected and that you receive a fair assessment of damages. They have experience in negotiating with insurance companies and can effectively advocate for your best interests. By entrusting a public adjuster, like our team at D.A. Lamont Public Adjusters, you gain a knowledgeable and impartial professional who will navigate the appraisal process on your behalf, maximizing your chances of a favorable outcome and a fair resolution to your claim dispute.
Frequently Asked Questions
An appraisal clause is a provision included in many homeowners or business owners insurance policies that provides a mechanism for resolving disputes over the amount of loss. It allows either the policyholder or the insurance company to request an appraisal when they fail to agree on the value of the damages.
When the appraisal clause is invoked, each party selects a competent and impartial appraiser within a specified timeframe. These appraisers independently assess the damages and try to reach an agreement on the amount of loss. If they are unable to agree, they choose an umpire who will make a final decision based on their assessments. The amount agreed upon by the appraisers or determined by the umpire becomes the final amount of loss.
The appraisal clause should be considered when there is a dispute between you and your insurance company regarding the amount of loss. This could arise when the insurer undervalues the damages or disputes the extent of coverage. Invoking the appraisal clause allows for an independent assessment of the damages, providing an opportunity to resolve the dispute more efficiently.
Yes, both parties have the right to choose their own appraiser. When faced with a dispute over the amount of loss, you have the option to appoint a competent and impartial appraiser to represent your interests. D.A. Lamont Public Adjusters, with their expertise in handling insurance claims, can be appointed as the appraiser for your claim. By choosing D.A. Lamont Public Adjusters, you benefit from their specialized knowledge and experience in appraising damages related to various types of insurance claims. Their team of skilled appraisers understands the intricacies of the appraisal process and can provide a fair and comprehensive evaluation of your claim. With D.A. Lamont Public Adjusters as your appointed appraiser, you can have confidence in their ability to advocate for your rights and help you reach a satisfactory resolution to your claim dispute.
The costs associated with the appraisal process are typically shared equally between you and your insurance company. This includes paying the appointed appraiser and covering the expenses of the appraisal and umpire. The specific allocation of costs should be outlined in your insurance policy.
Yes, the decision reached through the appraisal process is binding. Once the appraisers or the appraisers and umpire agree on the amount of loss, it becomes the final determination. However, it’s important to note that the appraisal process pertains only to the valuation of damages and does not address other coverage or liability issues.
D. A. Lamont Public Adjusters use state-of-the-art techniques to find or document any areas of your property that have been altered by damage.
Our team of public adjusters will assess, in detail, the physical damage your property has sustained as well as the cost of the business interruption caused by the damages.