Insurance Appraisal

Insurance Appraisal By The Swade Group

Insurance appraisal is a formal and legally binding process designed to resolve disputes between policyholders and insurance companies regarding property value or damage claims. It provides an alternative to costly and time-consuming litigation and is intended to result in a fair and equitable resolution for both parties.

The appraisal process is initiated when the policyholder or the insurance company formally requests an appraisal. This may occur when there is a dispute over the amount of a claim or the extent of property damage. Both parties must agree to the appraisal process.

Each party involved in the appraisal selects an appraiser. The policyholder selects one appraiser, and the insurance company selects another. These appraisers are typically experienced and knowledgeable about the type of property and damages in question.

If the two appraisers cannot reach an agreement on their own, they will jointly select a neutral third-party umpire. The umpire's role is to mediate disputes between the two appraisers and help facilitate a resolution.

The appraisers, and if necessary, the umpire, inspect the property and assess the damage. They document their findings, take photographs, and gather evidence to support their assessments.

Each appraiser independently determines the value of the property or the extent of the damage. They consider factors such as market value, replacement cost, depreciation, and the cost of necessary repairs. Both appraisers submit their valuation to the umpire if an umpire is involved.

The appraisers and, if necessary, the umpire, work together to reach an agreement on the final valuation or the scope of damages. This process may involve negotiation and discussion until a consensus is reached.