Practice Areas
Appraisals
Policyholders usually encounter disputes in their insurance claims over the value of their damaged or lost items. This disagreement between policyholders and insurance companies often results in delays in the process.
Are you considering an appraisal for insurance claims? Or have you been through appraisal? The insurance company will have experienced attorneys working behind the scenes to protect their interests during this process. Shouldn’t you?
What is an Appraisal?
An appraiser for the purposes of the appraisal process in an insurance policy is not the same "appraiser" used to give an estimated value of a home or business. In the appraisal process under insurance policies, an appraiser for insurance claims is someone who is qualified to give an opinion as to how much damage there is to property and how much it would cost to repair or replace the damaged property. Appraisers are often insurance adjusters, public adjusters, contractors, building consultants, or engineers.
F.A.Q.s
An appraiser for the purposes of the appraisal process in an insurance policy is not the same "appraiser" used to give an estimated value of a home or business. In the appraisal process under insurance policies, an appraiser is someone who is qualified to give an opinion as to how much damage there is to the property and how much it would cost to repair or replace the damaged property. Appraisers are often insurance adjusters, public adjusters, contractors, building consultants, or engineers.
The appraisal process is governed by the language in your specific policy. Generally, it involves both the policyholder and the insurance company selecting a “disinterested” appraiser to determine the accurate amount of loss. The appraisers then try to come to an agreement as to the amount of loss. If they are unable to do so, they would need to agree on an umpire to form a three-personal panel. The panel would then evaluate the loss and render a binding decision as to the amount of loss.
The insurance company should pay the binding award, plus interest. Depending on what State the property is located in, other penalties may also apply. After receiving an appraisal award (and/or payment thereof), policyholders should confer with legal counsel to determine if any other remedies are applicable to their case.
Appraisal usually takes place outside the court system; and, without experienced judges protecting and following the rule of law. Insurance companies have utilized the appraisal process for years to their benefit and have their go-to appraisers. You should ensure you have a qualified appraiser for insurance claims who is experienced and understands the appraisal process as well.
You should also be wary if the insurance company asks you to sign a release in exchange for it making an appraisal award payment. You are not required to sign a release following appraisal (or before) and should not do so without consulting with an attorney. It is not a required condition of appraisal that you sign a release.
The laws governing the appraisal for insurance claims are evolving.
The purpose of the appraisal was initially to help promote the resolution of claims without the involvement of expensive litigation and attorneys. Unfortunately, the process of appraisal (and the resulting necessary litigation) has made this area of law much more complex. At all times, you should understand that the insurance company almost certainly has a lawyer working behind the scenes to guide this process, and so should you. At Barcus Arenas, PLLC we are always up to date with the most recent laws in this area and can adequately ensure you are not unfairly taken advantage of.
