When policyholders and insurance companies disagree on the amount of damage or the value of a loss, it can create frustration and delays in getting life back to normal. Fortunately, most property insurance policies include a provision known as the Appraisal Clause, which offers a method for resolving disputes fairly—without going to court.
At AAA Public Adjusters, we guide our clients through this process to ensure their rights are protected and they receive the full compensation they deserve. Here’s a closer look at how the appraisal process works and why it’s such an important tool for policyholders.
What Is the Insurance Appraisal Process?
The appraisal process is a form of alternative dispute resolution used when the policyholder and the insurance company cannot agree on the value of a loss. This clause allows each side to appoint an independent appraiser. If these two appraisers cannot come to an agreement, they jointly select a third party—called an umpire—to make the final decision.
Important Note: The appraisal process does not decide issues of coverage or liability. It only determines the value of the damage or the loss.
When Can You Invoke Appraisal?
Appraisal can typically be invoked after coverage has been established, but a disagreement exists regarding the cost of repairs or the value of the property. Some common scenarios where appraisal may be appropriate include:
- The insurer undervalues your damaged property
- The repair estimate is significantly lower than the actual contractor bids
- The insurer omits certain necessary repairs from their estimate
- There’s disagreement about the scope of damage (how much was affected)
How the Appraisal Process Works
- Demand for Appraisal
Either the policyholder or the insurance company can initiate appraisal by submitting a formal written demand per the terms of the policy. - Selection of Appraisers
Each side selects a qualified, impartial appraiser to represent their position. It’s crucial to choose someone with deep knowledge of insurance estimating and property damage. - Agreement on an Umpire
The two appraisers then attempt to agree on an umpire—a neutral third party who will step in if the appraisers reach an impasse. - Evaluation of the Loss
Each appraiser will inspect the property, review documentation, and determine their own estimate of the loss. - Resolution
If the appraisers agree, their signed agreement becomes the binding award. If they disagree, the umpire reviews both sides and issues a final decision—any agreement signed by two of the three parties is binding.
Pros and Cons of the Appraisal Process
Pros:
- Faster than litigation
- Less expensive than hiring attorneys and going to court
- Helps resolve valuation disputes objectively
- Often leads to a fairer and more accurate settlement
Cons:
- Does not resolve issues of coverage
- Costs can add up (appraisers and umpire fees)
- Binding decision with limited ability to appeal
Why You Need a Public Adjuster
While appraisal is designed to be impartial, the process can be complex—and the outcome depends greatly on who you choose to represent your interests.
At AAA Public Adjusters, we help clients:
- Determine whether appraisal is the right course of action
- Select a trusted and experienced appraiser
- Prepare thorough documentation to support the value of the claim
- Communicate and negotiate effectively throughout the process
Our goal is always to protect your interests and maximize your claim recovery.
Final Thoughts
The appraisal process can be a powerful tool in resolving disputes with your insurance company—especially when handled by experienced professionals. If you’re stuck in a disagreement over the value of your property loss, don’t settle for less. Let the experts at AAA Public Adjusters guide you through the appraisal process and help ensure you receive the compensation you’re entitled to.
Have questions about the appraisal process? Contact AAA Public Adjusters today for a free consultation. We work for you, not the insurance company.
If you’re unsure about your current coverage or need help filing a claim, contact AAA Public Adjusters today. Our team of experienced professionals will guide you through the insurance process and ensure you receive the compensation you deserve.
Our highly trained, licensed public adjusters will guide you through the process of preparing and filing an insurance claim in a professional manner. Similar to hiring an attorney if you need to go to court, or hire a certified public accountant to file your tax return, you should only file an insurance claim with your own professional insurance and construction expert – at aaapublicadjusters.com.
Let AAA Public Adjusters get you the maximum return on your insurance claim! See how we can help.
To start a new claim, call 1.800.410.5054 today for a free inspection and policy examination from our Public Adjusters.
