If you have experienced a dispute with your insurance company regarding your recent property insurance claim, there are still options to work towards a better resolution and settlement!
What is an Insurance Appraiser?
An insurance appraiser is an unbiased person that will review the entire claim and evaluate the value of the property or amount of damage in order to provide a professional and neutral opinion. If a public adjuster was hired previously on the same claim, the appraiser cannot be from the same company.
When is Appraisal Appropriate?
Sometimes the insurance company and policyholder cannot come to an agreement on an insurance claim. Oftentimes, policyholders think they have to hire a lawyer at this point, however this is the appropriate time for each party to hire an insurance appraiser. This is a method of Alternative Dispute Resolution.
How Does the Appraisal Process Work?
After the appraisal clause/provision is invoked, the appraisers of the insured and the insurance carrier will review all the documentation previously submitted by both parties, conduct their own on-site investigation, estimate the damage, create a report and attempt to reach a consensus on the amount of loss.
What is an Insurance Umpire?
An insurance umpire is a nonpartisan person, unrelated to either the insurance company or policyholder, who will solely review the entire claim including all documentation compiled to date and make an objective decision regarding the value of your property or the amount of property damage.
When to Hire an Umpire?
If you and and your insurance company fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a district court of a judicial district where the loss occurred. The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item.
Once the Appraisal clause/provision is invoked, the insured’s appraiser and the insurance carrier’s appraiser will estimate the damage and try to come to an agreement on the amount of loss.
If the appraisers fail to agree, they will submit their differences to the umpire. An itemized decision agreed to by two of these three will set the amount of loss. Such award shall be binding.
Each party will pay its own appraiser and bear the other expenses of the appraisal and umpire equally.