Insurance claims don’t always go smoothly – especially when the damage is significant and the stakes are high. One of the most valuable tools available to policyholders in a claims dispute is the Appraisal Clause, a time-tested provision designed to resolve disagreements fairly and efficiently.
What Is the Appraisal Clause?
The Appraisal Clause is a standard provision found in most property insurance policies. It exists to settle disputes between the policyholder and the insurance company when they can’t agree on the value of the loss.
This clause doesn’t cover whether or not something is covered under the policy – that’s a separate issue. Appraisal strictly addresses how much a covered loss is worth.
When activated, the process works like this:
- Each side (the insured and the insurer) selects an independent appraiser.
- The two appraisers then choose a neutral umpire.
- If the appraisers can’t agree on a value, the umpire steps in and helps render a final decision.
- The final decision must be agreed upon by any two of the three (either both appraisers or one appraiser and the umpire).
This decision is binding and can help move a stalled claim forward, often with better results for the policyholder.
Why It Matters: Public Adjusters and the Power of Appraisal
A skilled public adjuster does everything possible to settle a claim through negotiation – leveraging detailed scopes of work, expert documentation, and knowledge of construction practices and policy language. But sometimes, those negotiations hit a wall.
It’s not uncommon for insurance company adjusters to:
- Ignore visible damage
- Undervalue repair costs
- Misunderstand or misapply construction methods
When that happens and negotiations break down, a public adjuster may recommend invoking the Appraisal Clause to protect your financial interests.
A Brief History: Benjamin Franklin and the Roots of Appraisal
Appraisal isn’t a new concept – it dates back centuries. In fact, Benjamin Franklin, one of the founders of the first American insurance company, was a pioneer in using third-party evaluations to resolve disputes. It’s a time-honored process rooted in fairness, neutrality, and finality.
When Should You Consider Appraisal?
You should consider invoking the Appraisal Clause when:
- The insurance company is stonewalling your public adjuster
- There is a significant gap between what your adjuster and the insurance company believe the damage is worth
- You’ve received a lowball offer that doesn’t cover the true cost of restoring your property
Appraisal isn’t about going to court. It’s about bringing in objective experts to provide a fair resolution.
Final Thoughts: Appraisal Adds Real Value to Your Claim
The Appraisal Clause exists to protect you, the policyholder. When your public adjuster is met with resistance, this provision can unlock the true value of your claim and ensure you receive the funds needed to properly restore your property.
If you’re feeling stuck in the claims process or facing an unreasonable offer from your insurance company, don’t give up. Ask your public adjuster about invoking the Appraisal Clause and take back control of your claim.
Contact Us for a Free Consultation
On-Site Adjusting is here to help. Contact us today for a free consultation and learn how we can advocate for you throughout your insurance claim.
📞 Call us at (866) 861-4992
📧 Email us at hello@onsiteadjusting.com
