Insurance carriers generally view the appraisal process as a useful, well established tool for resolving disagreements over the dollar amount of a covered loss, separate from broader claims handling or coverage questions.
Because appraisal clauses appear in many property insurance policies, carriers are typically familiar with the process and often have established procedures for selecting appraisers and moving through appraisal when it is invoked.
Carriers often view appraisal as a way to reach a fair, defensible resolution on a disputed dollar amount without the time and expense associated with litigation, which can benefit both the carrier and the policyholder.
At the same time, carriers generally expect the process to be handled by qualified, disinterested appraisers on both sides, since the value of appraisal depends on both appraisers bringing genuine, independent evaluations to the table.
Overall, appraisal is generally seen within the industry as a structured, efficient way to resolve a specific type of disagreement, fitting within a carrier’s broader approach to handling claims fairly and efficiently.
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 a specific claim, review your policy language and talk with your insurance company 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.