March 2023

Insurance Appraisal: What You Need to Know

If you've ever had to file a claim with your insurance company for property damage, you may have heard the term "insurance appraisal." But what exactly is an insurance appraisal, and how does it work?

An insurance appraisal is a process used to resolve disputes between policyholders and insurance companies over the value of property damage claims. It involves the appointment of an appraiser by each party, who then work together to determine the actual cash value (ACV) of the damage.

The ACV is the cost to replace or repair the damaged property, minus any depreciation. The appraisers will inspect the damage and then provide a written estimate of the ACV to the insurance company. If the two appraisers cannot come to an agreement, they will then select an umpire, who will make a binding decision on the ACV.

While an insurance appraisal can be a useful tool for resolving disputes, it is important to note that it is not the same as a property inspection or a complete evaluation of the damage. Additionally, not all insurance policies include an appraisal provision, so it is important to check your policy before assuming that this option is available.

It's also important to understand that the appraisers and umpire are not advocates for either the policyholder or the insurance company. Their job is to provide an impartial assessment of the damage and to determine the ACV based on their findings.

If you are considering an insurance appraisal, it's important to work with an experienced appraiser who understands the process and can provide an accurate estimate of the damage. You should also be prepared to provide documentation and evidence to support your claim, such as photographs or receipts for repairs.

In conclusion, an insurance appraisal can be a useful tool for resolving disputes over property damage claims. However, it is important to understand the limitations of the process and to work with experienced professionals to ensure a fair and accurate assessment of the damage.