What Is Appraisal?
A typical insurance claim involves both the client and the insurance company (or “carrier”) separately determining the damage to a property and then agreeing to a final amount to cover the amount of loss.
But what happens when the client and the carrier just can’t agree?
Appraisal is the process in which experienced professionals inspect the property damage, decide the amount of loss, and negotiate with the opposing appraiser to determine the amount of loss acceptable to both sides. If, after deliberations, the two appraisers are unable to come to an agreement regarding the loss, then a third person, called an umpire, is brought in to complete the negotiations.
But what happens when the client and the carrier just can’t agree?
Appraisal is the process in which experienced professionals inspect the property damage, decide the amount of loss, and negotiate with the opposing appraiser to determine the amount of loss acceptable to both sides. If, after deliberations, the two appraisers are unable to come to an agreement regarding the loss, then a third person, called an umpire, is brought in to complete the negotiations.
Appraisal Is A Simple Process
1. Both the client and the carrier select an appraiser to represent them during the appraisal process.
2. The appraisers selected by each side agree on an umpire.
3. The two appraisers inspect the damage and independently calculate the amount of loss they believe is appropriate.
4. The two appraisers negotiate from their positions and, typically, agree to a loss amount that both believe represents the best interest of all parties.
5. If the two appraisers cannot agree, then they bring in the umpire. The umpire reviews all of the appraisers’ facts and data and determines the proper loss amount.
2. The appraisers selected by each side agree on an umpire.
3. The two appraisers inspect the damage and independently calculate the amount of loss they believe is appropriate.
4. The two appraisers negotiate from their positions and, typically, agree to a loss amount that both believe represents the best interest of all parties.
5. If the two appraisers cannot agree, then they bring in the umpire. The umpire reviews all of the appraisers’ facts and data and determines the proper loss amount.
Appraisal Is A Binding Process
With very few exceptions, the appraisal process is binding. That means that the “award” (the final loss amount) is non-negotiable. The insurance company must pay the award amount. The client must accept the award.
Am I Ready For Appraisal?
If you can answer all of the following questions with a “yes”, then you are ready for appraisal:
o Do I have an estimate for the damage to the property?
o Do I have an estimate from the insurance company?
o Is there more than a $5,000 difference between the estimates?
o Do I have an estimate for the damage to the property?
o Do I have an estimate from the insurance company?
o Is there more than a $5,000 difference between the estimates?
