What is an Insurance Appraisal?

It’s not a stretch to imagine that you and your Insurance Company may disagree on the ” amount of loss”.

Is litigation the answer? Maybe. One would think that having your day in court would be satisfying. But how much in damages? What will it actually cost to repair or replace the damaged property? Many times a judge will want the amount of loss set by an Appraisal Panel. Sometimes the Insurance Company and the Policyholder get so bogged down fresh independent eyes are needed.

Enter the Insurance Appraisal Process.

What is the Insurance Appraisal process?

“An appraisal clause is a Policy Provision found in the Loss Settlement section.  It is an Alternate Dispute Resolution, which can resolve a disagreement when the Carrier and Policyholder do not agree on the amount of loss.  It is an alternative to a lawsuit.  Appraisal does not address coverage issues but can include or exclude items based on causation depending on the state”. ( IAUA )