Appraisal is an informal process conducted by two appraisers who determine solely the amount of loss for the damage property. If the two appraisers disagree, then an umpire is chosen by the parties to resolve differences, if the appraisers cannot agree on an umpire, then frequently a court is petitioned to appoint one.
Appraisal language in a policy typically reads as follows:
If you and we fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of the appraiser's identity within 20 days of receipt of the written demand. 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 district court of a judicial district where the loss occurred. The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item.
If the appraisers fail to agree, they will submit their differences to the umpire. An itemized decision agreed to by any two of these three and filed with us will set the amount of loss. Such award shall be binding on both parties. Each party will pay its own appraiser and bear the other expenses of the appraisal and umpire equally. Traditionally, appraisal is employed to determine the amount of loss and nothing more. The appraisal clause can be invoked by either party when a determination on the amount of loss is all that is at issue.
Select Public Adjusters, LLC. provides the service of appraisal when necessary to maximize you insurance claim payout.