Insurance Appraisals

The "Insurance Appraisal" is a route that any homeowner can take that serves as an "alternative settlement resolution" in the event of a disagreement in loss value. In short, it is a dispute resolution process created for both disputing parties to avoid paying more costly legal fees in hiring an attorney. 

In most insurance policies, the appraisal provision is included in plain English. The policy language itself is self-explanatory:

-Standard Policy Language-

E. Appraisal

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. 

Each party will: 

1. Pay its own appraiser; and 
2. Bear the other expenses of the appraisal and umpire equally.*

Depending on the complexity of your disputed loss and the players involved, appraisals can take anywhere from 2 to 6 months from start to finish, settlement in hand. 

The process can be delayed (from the standard 2-3 month turnaround) if we and your carrier's appraiser struggle to agree on the valuation of your loss. If we do need to get an umpire involved to resolve any disagreements, this can often mean tacking an additional 2-3 months before your settlement is received.

Bear in mind, insurance appraisals are considered an "alternative settlement resolution." It is a route most policyholders can take that is almost always more timely and cost-effective than hiring an attorney.

The insurance company will not and does not increase individual premiums based on the occurrence of natural disasters. Furthermore, they can not increase individual premiums based on historical policyholder contention or demand for additional settlement funds.

In some cases, however, the insurance premiums will increase for all policyholders in areas where the risk to natural disasters is increasing, such as regions where the occurrence of expansive natural disasters has been trending upwards. 

No. The insurance company can not drop you due to your individual actions as a policyholder.  Similarly, they can not abruptly terminate policies in the wake of a natural disaster. 

Carriers do, however, reserve the right to discontinue widespread coverage across an entire region. In doing so, they simply may choose not to renew your policy. 

When this occurs, it is not based on a policyholder's individual history with their insurance company. Rather, it reflects the carrier's widespread profitability in covering larger regions as a whole.

In most cases, yes. The appraisal process is an "alternative settlement resolution." In short, this process is provided to save you and your carrier any avoidable costs in hiring an attorney. 

By the end, our goal is to (1) Ensure that your property can be repaired the right way, and (2) Ensure that all appraisal fees and expenses remain reasonable for you, the homeowner, within that context. 

Property Insurance Experts strives to ensure that you, the homeowner, are made whole.