Because appraisal clauses generally give both the policyholder and the insurer the right to invoke the process, occasionally one side may be reluctant to participate once the other side has made a demand. Understanding what typically happens in this situation can be helpful.
If a party fails to select its own appraiser within a reasonable time after a valid demand for appraisal, many policies and many states provide mechanisms to address this, such as allowing the other side to request a court to appoint an appraiser on the non participating party’s behalf.
Some policies include specific language addressing what happens if one side does not comply with the appraisal process, including potential consequences that can vary depending on the policy and applicable state law.
Refusing to participate in a process that the policy provides for can carry its own risks and legal implications, which can vary significantly depending on the specific circumstances and the state involved.
If you are facing a situation where the other side is not cooperating with a valid appraisal demand, this is a good time to consult with your insurance company, agent, or an attorney familiar with your state’s laws to understand your specific options.
This article is general education about how the appraisal process commonly works. It is not legal advice, and specific procedures can vary by state and policy. If you have questions about your own claim, review your policy language and talk with your insurance company, agent, or an attorney familiar with your state’s laws.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.