When is an APPRAISAL necessary?

An appraisal occurs when the Name Insured (Policyholder) and the Insurance Company (Carrier) cannot agree to a “fair” settlement amount and subsequently agree to an appraisal. We have knowledgeable personnel and experience in the Appraisal process. Continental Adjusters, through the appraisal process, recently increased a claim from $244,544 to $5,311,476.

How an appraisal works

If the Insurance Company and the Named Insured (Policyholder) disagree on the value of the property or the amount of loss and mutually agree to resolve the disagreement through an appraisal, an appraisal of the loss may be conducted. Each party will select a competent and impartial appraiser and notify the other of the appraiser selected within 20 days after their mutual agreement to conduct an appraisal of the loss. The two appraisers will select an umpire. If they cannot agree upon an umpire within 15 days, then, at the request of either the Insurance Company or the Named Insured, and after providing at least 10 days’ notice of hearing to the non-requesting party by (i) certified mail and (ii) facsimile or e-mail, selection of the umpire will be made by a judge of a district court in the county where the loss occurred. The appraisers will state separately the value of the property and amount of loss. If the appraisers submit a written report of agreement to the Named Insured and the Insurance Company, the amounts agreed upon will be the value of the property and the amount of loss. The amounts agreed upon will be binding on both parties. If the appraisers fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding on both parties. Each party will:
  • Pay its chosen appraiser; and
  • Bear the other expenses of the appraisal and umpire equally.
If there is an appraisal, the Insurance Company will still retain its right to apply the exclusions, limitations and other terms and conditions of the Policy, including but not limited to its right to deny the claim.
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