Have you had a covered loss and are now trapped due to a disagreement about the value of your property damage claim? Unsurprisingly, this is a regular occurrence, and the most common solution is litigation between the insured and the insurer.
If you and your insurer disagree on the value of your property damages, you may look into the appraisal clause. You may also be wondering, “When is the right time for the appraisal clause?”
In this post, we will discuss when it is preferable to employ the insurance appraisal clause.
When to Invoke the Appraisal Clause?
When an appraisal clause is “invoked,” the policy allows the insured and the insurer to hire an impartial, unbiased assessor to examine each party’s supporting papers to establish the extent of the damage. Here is a guideline to help you understand when you should pursue this option:
First, the appraisal clause is particularly relevant when there is a disagreement over the extent of repair and the cost of repair for the property that has been damaged or destroyed. If you and your insurer dispute about “coverage” under your policy, the appraisal clause is not the means to resolve the issue. However, if coverage has been established but there is a disagreement in the settlement amount about the extent and cost of restoration, the appraisal clause may be used to reconcile discrepancies. The term “scope” in this context refers to the extent of the insured loss. An argument over scope stems from establishing how much of an item’s worth was lost. Price arguments revolve over the monetary amount necessary to restore the property. An assessor is competent to give expert advice on calculating the cost of restoration, particularly concerning construction materials and kinds.
Second, the appraisal clause is applied when a large sum of money is at stake. The assessment procedure is not cheap since it includes the expense of an appraiser’s costs as well as half of the umpire’s fees. Depending on the intricacy of your claim, an appraiser will often operate on an hourly or fixed fee basis. The insurance company will cover the appraiser’s expenses as well as the other half of the umpire’s fees. Still, you should think about how much money you anticipate making as a consequence of the evaluation. The sum in dispute must be more than the expenditures of the assessment procedure.
Finally, if communication has broken down, the appraisal clause may be a viable alternative. If you find yourself at a standstill about the settlement amount and no longer have open contact with your insurance company or adjuster, this might be a hint that a different course has to be taken. Stonewalled communication might be a sign that it’s time to enlist the help of an impartial third party.
Get Back What’s Rightfully Yours with Stone Claims Group
Stone Claims Group aspires to push the boundaries of claims investigation for our customers by applying cutting-edge investigative methodologies. Our public adjusters have a lengthy track record of success and expertise with customers from all walks of life, and we service over 15 locations across the United States.
When you employ our services, you will receive a committed team of individuals as well as our combined talents to offer frequent contact, attention to detail, and varied perspectives on how to establish your claim.
Contact Stone Claims Group as soon as possible for a free claim consultation!