Does Choosing Appraisal Mean You Cannot Trust Your Insurer

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Some policyholders wonder whether invoking the appraisal clause implies a lack of trust in their insurance company, or whether it might negatively affect their relationship with their insurer going forward. This is a reasonable concern, but it is worth understanding what appraisal actually represents.

Appraisal is a standard, built in provision found in many property insurance policies, available to both the policyholder and the insurer alike. Using it is generally understood as exercising a normal contractual right, not as an accusation of bad faith or wrongdoing.

Disagreements over the dollar amount of a covered loss can arise for many reasons, including honest differences in how damage is assessed or how repair costs are calculated, without either side acting in bad faith.

Because appraisal clauses are designed specifically for these situations, using the process as intended is generally viewed within the industry as a normal, expected part of how certain claims get resolved.

Choosing to invoke appraisal reflects a specific disagreement over a dollar amount, not necessarily a broader judgment about the insurer as a whole, and it is a tool built into the policy for exactly this kind of situation.

General education only: the appraisal process described here can vary by state and policy language, and nothing in this article is legal advice. If you have questions about your own claim, review your policy language and talk with the insurance company, agent, or an attorney familiar with your state’s laws.

Russ Lis works nationwide as a property insurance appraiser and umpire, based in Minnesota. Have a question about your own claim? Contact Appraisal Resolution.