Cost is often a significant factor when comparing appraisal to litigation, and understanding the general cost differences between the two can help explain why appraisal is a commonly used option for resolving valuation disputes.
Litigation typically involves attorney fees, court costs, and expenses related to formal legal procedures like discovery and, potentially, a trial, all of which can add up significantly over the course of a case.
Appraisal costs generally consist of each side’s appraiser fees, along with a shared umpire fee if one becomes involved, which is often considerably less than the cumulative cost of a full litigation process.
Because appraisal is typically faster than litigation as well, the reduced time involved often contributes to lower overall costs, since a shorter process generally means fewer cumulative fees and expenses.
That said, actual costs can vary significantly based on the complexity of the claim and the specific circumstances involved, so anyone weighing these options should consider getting a realistic cost estimate for their specific situation from their appraiser or attorney.
This article is general education, not legal advice, and rules can vary significantly by state and by policy. If you have questions about your own claim or your legal options, 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.