Once an appraisal award is reached, agreed to by any two of the three participants in the process, many people wonder what actually happens next. While the specifics can vary by policy and by state, there are some general patterns worth understanding.
The appraisal award typically states the dollar amount of the covered loss, often broken down by category or by item, depending on how detailed the appraisers and umpire chose to make it. This figure represents the resolved value of the disputed damage.
In many cases, the insurance company then applies the terms of the policy to that award amount, such as any applicable deductible, coverage limits, or depreciation, to determine the actual payment owed. Appraisal generally resolves the dollar value of the loss, while the insurer still applies the remaining policy provisions to calculate payment.
Payment is typically issued within a period specified by the policy or by state law after the award is finalized. If a policyholder does not receive payment within a reasonable time, following up in writing and referencing the appraisal award can help keep the process moving.
An appraisal award generally addresses only the dollar amount of the loss. It typically does not resolve separate coverage questions, such as whether a specific item was covered at all, unless the parties had also agreed to submit those questions to the same process.
Because outcomes can differ based on policy language and state rules, anyone unsure what a specific award means for their claim should review their policy and, if needed, speak with their insurance company or an attorney.
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 are considering appraisal for 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.