Settle & Invoke the Appraisal Clause
More often than not, insurance companies fall into tussles and disagreements about certain things. For instance, the amount of loss or the scope of damages during a claim settlement are hot topics for discussion. When these disagreements occur and there is a refusal to negotiate, there is an option. You can invoke something to aid you. No, we’re not talking about invoking an incantation to put a spell on them. We’re talking about invoking the appraisal clause in your insurance policy.
But what is the appraisal clause? Appraisal, as you may already know, refers to hiring a professional opinion on the value of real estate or personal property. But the reality is that most policyholders are lost when it comes to the arduous appraisal process. When two opposing parties are unable to come to an agreement, a nonjudicial means of resolving the issue is the only way to solve the problem.
You can find this process within the conditions section of homeowners or business owners policies. The appraisal clause and its process is written below.
“If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20 days after receiving a written request from the other. 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 court of record in the state where the “residence premises” is located. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss.”
In order to invoke this appraisal clause, each party has to go through a two step process. For starters, they have to pay the appointed appraiser. Secondly, they have to bear the other expenses of the appraisal and umpire equally. The appraisal is the faster, more efficient way of resolving a pricing dispute.
An insurance appraiser is a competent and disinterested professional who will evaluate the claim and value of the property or amount of the loss. Keyword on disinterested as there should be no bias in the case.
Selecting the right appraiser is a fine art. This person needs to understand the business and its process like the back of their hand. Before you are ready to invoke the appraisal, be sure that you have an experienced expert on your team that will warn you if the insurance company is trying to take advantage of you.