When a dispute arises between the insurer and the insured regarding the settlement amount, an appraisal may be requested by either party.
Often, during claim negotiations, the insurance company may under value the claim, overlook damages, and ignore valid arguments that the insured and/or their public adjuster makes.
Usually, this results in an "impasse".
When an insured invokes the appraisal clause to dispute the carrier's offer, it is very important that they appoint an experienced and well-educated appraiser who understands not only the subject matter of the dispute, but the components of the appraisal process.
Keep in mind that the appraisal process is essentially the policy holder's last chance to prove the value of their claim.
It is possible that the appraisal can rule in the favor of the Insurer, leaving the insured with an insufficient amount to recuperate from their loss.
This is known to happen when the Insured elects to appoint a contractor or other labor-related trades person who is in essence under-equipped to defend the Insurer's hired professional appraiser.
The moment the claim enters the appraisal process, it is imperative that the appraiser prepares well for the presentation of the case.
Here are a few simple guidelines to remember when preparing for the appraisal: 1.
Be organized.
Appraisal is like chess, developing a strategy to be a step ahead of your opponent is key.
Determine the key issues and disputes with the Insurer's analysis of the claim.
Pinpoint ways to address those key issues and figure out the best way to present those issues, together with your recommendations on how to address them, in the most persuasive way.
2.
Prove the damages and the appropriate solutions.
The burden of proof is often on your side, so gather data that would best support your claim.
Provide extensive data and information on each item that you would like to focus on and explain why it values more than the amount the Insurer has priced it.
Present photos detailing actual damages to items in order to prove that they should be replaced instead of restored.
Anticipate how the Insurer's appraiser will counter your arguments, and be prepared to address those concerns.
3.
Stay objective.
Never use personal opinion to argue the value of items, unless your opinions are based on presented fact.
This is particularly helpful for items such as collections, antiques and artworks.
Secure appraisals of experts in these fields to determine the value of these pieces.
4.
Acknowledge weaknesses in the claim.
Avoid the temptation to prove every item on your claim to be correct.
There may be instances when you would find that the Insurer's analysis of certain items are agreeable.
Acknowledging those would strengthen your credibility because it shows that you are not out there to blindly maximize the settlement, but rather, to secure what is accurate and commensurate to the loss.
5.
Review all presentation prior to discussing it with the opposing party.
Be very thorough and examine each aspect of the presentation well in advance to give you time to polish and gather additional data if necessary.
6.
Final presentation.
The final presentation is complete, organized, and presented in a professional manner.
When meeting with the other party, make sure that you know every aspect of your claim and can confidently answer any further concerns they may have about your presentation.
7.
Bonus Tip: Remember that the number one most important aspect of the entire appraisal process is to secure the right umpire!