No one wants to have to make an insurance claim, but having a policy in place means you can relax in your home, knowing that you’re covered in the event of any major unforeseen incidents. Whether it’s fire, theft, flood, or some other disaster, you’ll be able to make a claim and avoid being left in an unfortunate or potentially perilous financial situation.

Many of these insurance claims are straightforward, especially when you’re dealing with a reputable provider, but even then, disagreements on valuations or other matters can arise. That is where insurance appraisals come in.

When is an Appraisal Needed?

Appraisals are generally required when the insured party and the insurance provider disagree on the value of an insurance claim. This is typically a result of the policyholder and the insurance company estimating the value of the property covered differently. However, in some cases, there may also be disagreements on what costs are covered or uncertainty as to whether there was any malicious intent.

Appraisals provide a relatively simple and effective way of addressing these disagreements and ensuring that the homeowner is able to receive the full amount that is fairly owed to them without any unnecessary delays or additional stress.

What are the Benefits of the Appraisal Process?

One of the key advantages of the appraisal process is that it can settle insurance disputes without the need for legal action. Although engaging in litigation may be the right choice for some, it is a long and costly process that most would rather avoid. By turning to the services of an independent appraiser instead, homeowners can save themselves this trouble and still feel confident that they’re getting what they deserve.

In many cases, the appraisal process can allow both parties to reach an agreement they’re happy with in the span of just a few weeks, unlike lawsuits which may take a year or even longer to reach their conclusion.

In addition to the faster resolution and reduced costs, it’s also important to note that appraisals are carried out by independent third parties with all of the experience and expertise needed to accurately assess values. This means you can be confident that the figures they provide will be accurate and free from any bias.

How Does the Appraisal Process Actually Work?

Although the details may vary slightly depending on the terms of your specific policy, the overall process generally follows the same basic steps:

The Appraisal Clause is Invoked

Typically, when a dispute arises between the homeowner and their insurance provider, either of them is entitled to invoke the appraisal clause of their policy. This clause, which is found in the majority of homeowners insurance policies, allows for the use of the appraisal process for resolving disagreements over the value of an insurance claim.

The Appraisers are Chosen and Appointed

Both the homeowner and the insurance company select and appoint an appraiser. Both parties should choose an appraiser who has experience dealing with the type of property and damage that the claim relates to.

The Valuation is Determined

Both appraisers will assess the property and the damage it has sustained, using this to determine the valuation of the loss. In some cases, such as when they are unable to agree on the valuation, they will also work with a completely independent third-party appraiser, known as an umpire, to settle on an amount.

The Insurance Claim is Settled

Once the appraisers have agreed on a figure, this will then be taken as the total amount of the loss and used to settle the insurance claim. Having agreed to the appraisal process, both sides are typically bound by this decision.

Summing Things Up

Insurance appraisals give both providers and policy owners an easy and effective way to reach a settlement amount they’re both happy with, without the need for litigation and the time, fees, and bad feelings that can come with it. This means homeowners can relax and feel confident that, should the worst happen, their provider will give them the support and compensation they’re fairly entitled to without any unnecessary stress.