Common Questions
Frequently Asked Questions
Appraisal is a policy provision found in the Loss Settlement section of an insurance policy that serves as an alternate dispute resolution for policyholders and insurance carriers. Insurance claim appraisers and property appraisers differ in that property appraisers don’t deal with the value of insurance claims. Appraisers do not argue coverage within the policy and only estimate property damage. A typical Appraisal clause is worded as so:
“If you and we fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either the policyholder or insurance company 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.”
It is an option for policyholders who disagree with the insurer's estimate of a property damage claim value. The process of appraisal involves both parties hiring their own insurance appraisers to determine the value of the loss. It serves as a binding contractual process and a more expedient alternative to filing a lawsuit. It is not designed to address coverage issues, but may include or exclude items based on causation depending on the state. The Insurance Appraisal process involves a panel of three participants: the insurance company's appraiser, the policyholder's appraiser, and an umpire who serves as the final decision maker. If the appraisers disagree the umpire rules on the amount of the loss and/or scope of work, but does not have the authority to make decisions as to coverage within the policy.
- Claim is barely or partially paid
- Verify policy has appraisal clause
- Provide Insurance Appraiser documentation
- Hire Insurance Appraiser and pay retainer
- Assigned Insurance Appraiser with Engagement Letter
- Demand/Invoke Insurance Appraisal
- Insurance company names their Appraiser (2-3 weeks)
- Insurance Appraisers Agree on Umpire (1-4 weeks)
- Insurance Appraisers visit the property
- Insurance Appraisers exchange estimates
- If Insurance Appraisers disagree the Umpire is notified
- Umpire decides award
- Award is signed – minimum 2 signatures
- Final Insurance Appraisal fee is paid
- Award is submitted for payment to the carrier (1-2 weeks)
- Carrier pays submitted reward (1-2 Weeks)
- Fill out “Appraisal Request Form”
- Elite contacts customer for initial consult and pricing
- Retainer is collected
- Adjusters’ estimates, legible floor plans/drawings, photos, specialty bids are uploaded
- File is reviewed by Elite, verifying all relevant data collected
- Insurance Appraiser is Assigned when Engagement Letter is signed by customer and uploaded/emailed
- Initial fee is paid online
- Property is assessed & Estimate is completed
- Appraisal is invoked/demanded
- All other steps “Typical Appraisal Steps” see above step 7
The best Insurance Appraisers are well versed in damage assessment and estimating. Adjusters and restoration contractors with Xactimate 3 Certification or similar with appropriate experience, in depth understanding of the appraisal process, and knowledge of the type of loss being appraised make the best appraisers. For most states there is no certification for appraisal; however, some do require a certification at the state level.
Usually, the two appraisers can reconcile their differences and reach an agreement on the loss amount. Should they fail to agree, they will defer to the umpire. Acting as an unofficial arbitrator, the umpire resolves any disputes between the appraisers. The majority of insurance policies stipulate that the loss amount will be determined by the decision of two out of the three members comprising the appraisal panel.
If the Insurance Appraisers disagree on the umpire selection the matter is submitted before a county judge who decides. In this instance each side will hire a knowledgeable attorney and each one will submit their list to the judge and make arguments for their perspective umpires. It is not uncommon for a judge to select someone disinterested who is not from either list such as a judge, arbitrator, mediator, or an attorney.
Virtuappraise is a process we use attempting to appraise your property virtually with the other appraiser. It is extremely cost affective through the saving of sight visit costs.
- The damage is obvious.
- There has been some type of damage approved on the affected area i.e. shingles for the roof.
- You are able to provide images, measurements, and the insurance companies loss report.
- You live in rural or urban areas.
- Your claim is small or large.
Elite will review your claim and prepare an estimate based on the information you provide. We draw up your appraisal letter and you send it to the carrier. We will use multiple proprietary tactics to try to get your claim resolved virtually. If the carrier refuses to handle the appraisal virtually, you withdraw your demand letter.
Pricing depends on the size of the estimate we have to draw up. There is minimal fee for filing up front. If the carrier refuses to handle virtually, the only charge is your estimate/filing fee. Please contact us for more details.
