Disclaimer: This information is for educational purposes only and does not constitute legal or insurance advice.
When you and your insurance company can’t agree on the amount of your property damage claim, insurance appraisal provides a structured path to resolution.
This formal process (which is different from, and resembles nothing like the real estate appraisal process) built into most property insurance policies, offers an alternative to costly litigation while allowing for a faster resolution.
What Triggers Insurance Appraisal?
Appraisal only happens if a party demands it. In most policies, either the policyholder or the insurance carrier can demand appraisal.
It’s important not to demand appraisal without understanding this binding process, and without having an appraiser hired.
Licensed home appraisers are not used within this dispute resolution process, and they are not familiar with it. Appraisal in this context is a binding, alternative dispute resolution process that uses professionals familiar with claims. Appraisal in property insurance claims is not the same as real estate appraisal.
Common Situations:
- Disputes over repair costs
- Disagreements about replacement values
- Conflicts over damage extent
- Different contractor estimates
Important: Appraisal only resolves amount disputes, not coverage issue. If your insurer denies coverage partially or entirely, appraisal likely isn’t the right tool. You can reach out to us for questions.
How the Appraisal Process Works
The Basic Process:
- You or your insurance company requests appraisal in writing
- Each side selects and hires their own qualified appraiser (again: this process does not utilize licensed home inspectors, it utilizes specialists trained in property claims appraisal)
- Both appraisers inspect your property and review damage
- If they agree on the amount, the process ends
- If they disagree, they select a neutral umpire
- Any two of the three parties make the final, binding decision
Why Professional Help Matters:
- Selecting the right appraiser is crucial to your outcome
- Proper documentation can significantly impact the award
- Understanding policy language affects the process
- Experienced representation levels the playing field
What You Should Know Before Appraisal
The process can be complex:
- Choosing the wrong appraiser can hurt your outcome
- Proper documentation is critical to success
- Insurance companies have experienced appraisers
- You need someone who understands your policy
Timeline and costs:
- Process typically takes 30-90 days, but can take longer, depending on the complexity or size of the claim
- You’ll pay for your appraiser and half the umpire’s fee
- Total costs often range from $1,000-$5,000, but pricing can vary, depending on length of the process and complexity of the claim issue
- Award is final and binding—there’s no second chance
How Cardinal Resolve Can Help
At Cardinal Resolve, we understand that insurance disputes can be overwhelming for property owners.
Our experienced public adjusters in Utah can help you understand whether appraisal is right for your situation and guide you through the process.
We can act as your appraiser, securing a claim resolution through appraisal.
Need assistance with a property claim or considering appraisal? Contact us today for a complimentary, no obligation claim review.
