The Appraisal Provision

If you are having a dispute with your insurance company over the price of the claim (the total amount of loss), you may be best suited to invoke/demand appraisal instead of hiring a public adjuster.

This will usually yield good results if you can find an experienced appraiser in your area. If you have chosen a contractor who does a lot of insurance work, chances are good that they have appraisers that they work with. If not, we can help you with that. Here is the wording on most appraisal provisions:

If you (insured) and we (insurer) fail to agree on the amount of loss (total loss or loss in value), either party may demand that the loss be set by appraisal. Either party must make a written demand for appraisal, and each will select a competent, independent appraiser. The appraisers will then determine the amount of loss. If the two appraisers cannot agree within a reasonable time, they will submit their differences to an umpire, and a written agreement signed by any two of the three (the two appraisers or one appraiser and the umpire) will be binding. The cost of hiring the umpire will be divided equally between the insurer and the insured.

Appraisal is great because you bring in independent, unbiased 3rd parties. The appraisers pick a neutral umpire in case they have any differences to resolve. The 3 make up the appraisal panel. If any 2 out of the 3 on the panel agree to the price they sign the award and it is legal, binding, and final. That amount becomes the new amount of the claim. The carrier pays their appraiser, you pay yours, and the costs of the umpire (should you need them) is split 50/50 between both parties. This is a fair and inexpensive way to settle your claim. As a public adjuster, we do many appraisals every year. Chances are, your contractor may know us, or at least know of us.