Insurance Appraisal Clause… A Policyholder’s Best Chance to Resolve an Insurance Claim Dispute!

Under the appraisal clause, each party selects an appraiser to assess the loss or damages. If the two appraisers cannot agree on the amount of loss or damages, they will then select a neutral umpire. The umpire’s role is to review the appraisers’ assessments and make a final decision on the amount of loss or damages.

The appraisal process is generally faster and less expensive than litigation, which can drag on for months or even years. It is also a way for policyholders to level the playing field with insurance companies, which may have significant resources and expertise in handling claims.

However, it is important to note that the appraisal clause should not be used as a substitute for carefully reviewing and understanding your insurance policy and coverage. It is always best to work with your insurance company to resolve claims directly and to consult with an experienced attorney if you have any questions or concerns about the claims process.

In summary, the insurance appraisal clause can be a policyholder’s best chance to resolve a dispute with their insurance company over the amount of loss or damages. It provides a fair and efficient process for both parties to reach a resolution and can often save time and money compared to litigation.

1. When to use the appraisal clause: The appraisal clause is typically used when there is a disagreement between the policyholder and the insurance company over the amount of loss or damages. This can occur in a variety of situations, such as property damage claims, auto insurance claims, or other types of insurance claims.
2. How the appraisal process works: Once the appraisal clause is invoked, each party selects an appraiser to assess the loss or damages. The appraisers then review the evidence and documentation provided by both parties, and if they cannot agree on the amount of loss or damages, they will select a neutral umpire. The umpire will then review the assessments and make a final decision on the amount of loss or damages.
3. Binding vs. non-binding appraisals: There are two types of appraisals under the appraisal clause: binding and non-binding. In a binding appraisal, the decision of the umpire is final and binding on both parties. In a non-binding appraisal, either party can reject the umpire’s decision and pursue other options, such as litigation.
4. Cost of the appraisal process: The cost of the appraisal process is typically split between the policyholder and the insurance company. Each party is responsible for paying their own appraiser, while the cost of the umpire is typically split equally between the two parties.
5. Timeframe for the appraisal process: The timeframe for the appraisal process can vary depending on the complexity of the claim and the availability of the appraisers and umpire. However, the process is generally faster than litigation and can often be completed within a few weeks or months.

Overall, the insurance appraisal clause can be a valuable tool for policyholders in resolving disputes with their insurance company. However, it is important to carefully review your insurance policy and consult with an experienced attorney before invoking the clause to ensure that it is the best option for your specific situation.