When is The Right Time for the Appraisal Clause?

Whether you have just faced a natural disaster or your property is damaged due to some other reason, confronting your insurance company can be intimidating. Sometimes, the insurer may undervalue or outright deny your claim, causing you financial and emotional stress. In such cases, you may consider invoking the appraisal clause in your insurance policy. Here, we will guide you on when the right time is to use an appraisal clause and what steps you should take.

The first thing you should do when you notice the damage is to call your insurance company and report the claim. The policy terms will dictate the time period within which you should notify your insurer regarding your loss. Once you have filed a claim, your insurer will send a claims adjuster to inspect the damage and estimate its worth. You need to make sure that you are present when the adjuster comes to inspect the damage. This will give you a fair understanding of the adjuster’s assessment and help you compare it with your expectations. 

If you feel that the adjuster has failed to assess the extent of damage and undervalued your loss, you can request an appraisal. Invoking an appraisal means that you are inviting an independent appraiser to estimate the damage for which the insurer is liable. Generally, each party selects an appraiser, and both appraisers will appoint an umpire. The umpire’s job is to break a deadlock between the appraisers in case of any disagreement. 

It is important to note that you cannot demand an appraisal for every dispute. You can only invoke an appraisal if you and the insurer disagree on the quantum of damages. If the dispute is over coverage, interpretation of the policy language, or liability, you cannot request an appraisal. In such cases, you may need to resort to litigation or arbitration to resolve the issue.

Once you have invoked the appraisal clause, the appraisers will inspect your property and come up with their estimates. If the appraisers agree on the estimate, their decision becomes binding, and your insurer must pay the amount within a set timeframe. If the appraisers disagree, they will submit their differences to the umpire for final determination. The umpire’s appointed decision becomes binding, and both parties must abide by it.

Conclusion

Navigating an insurance claim can be a challenging task, especially if you are doing it for the first time. Knowing when to invoke an appraisal clause can help you get a fair settlement for your losses. However, appraisal may not always be the best remedy for your situation. You should always consult with an experienced insurance claims adjuster who can advise you on the best course of action. If you are looking for an insurance loss adjuster in Hillsborough, FL, please do not hesitate to contact Five Star Claims Adjusting. We offer a free inspection to assess the damages and guide you through the claims process.