01/25/2025
Appraisal process.
The insurance appraisal process is a way to resolve disagreements about the value of a claim between you and your insurance company. Here’s how it typically works:
1. Disagreement on Value: If you and the insurance company can’t agree on the amount of the claim (such as the cost to repair or replace damaged property), you can request an appraisal.
2. Appraisers Are Appointed: Both you and the insurance company select independent appraisers to represent your interests.
3. Selection of an Umpire: If the two appraisers can’t reach an agreement, they jointly select a neutral third party called an umpire. The umpire’s role is to help settle the dispute.
4. Appraisal Process: The appraisers review the damage, gather evidence, and work together to determine the value of your loss. If they agree, their decision is binding. If they can’t agree, the umpire reviews the evidence and makes the final decision, which becomes binding.
5. Final Decision: Once the appraisal process is complete, the insurance company pays the agreed-upon amount as determined by the appraisers or the umpire.
The appraisal process focuses solely on the amount of loss and not issues like coverage or liability. It can be a faster and less expensive alternative to going to court.
