Appraisal is a form of alternative dispute resolution that is used to try to get policyholders and insurance companies to a solution without going through litigation. The basic purpose of an appraisal is to resolve a dispute between a policyholder and the insurance company about the amount of loss. This means there is a disagreement about how much you should get paid for your insurance claim.
What Is the Insurance Appraisal Process?
Once appraisal has been invoked by either party, the insured’s appraiser and the insurance carrier’s appraiser will inspect the property and estimate the damages to try to come to an agreement on the amount of loss. If the two appraisers fail to agree on the amount of loss, they will invoke the umpire, which is a neutral party agreed to in the beginning and submit their differences. The two appraisers and the umpire will meet back at the property for the umpire inspection. The umpire will submit his or her decision to the appraisal panel. Once two of these three agree on the amount of loss, that such award shall be binding. Each party will pay its own appraiser and will equally split any other expenses of the appraisal and umpire fee.