When you and your insurer disagree about how much a covered loss is worth, many property policies include an appraisal clause. It can be a useful tool, but it is not right for every dispute and it can affect your other options.
How appraisal generally works
Each side typically names a competent appraiser, the two appraisers select an umpire, and an agreement by any two of the three sets the amount of the loss. The process is usually faster than a lawsuit and is meant to resolve disputes over the amount of the loss.
What it generally does not decide
Appraisal is mainly about the value of the damage. Disputes over whether the policy covers the loss, whether exclusions apply, or whether the insurer acted in bad faith are generally legal questions for a court, though the line between amount and coverage can be hard to draw.
Think before you invoke it
Read the exact language of your policy, because clauses differ.
Consider the cost of your appraiser and half the umpire's fee.
Understand how an appraisal award could affect later claims.
Get your own estimate from a qualified contractor first.
Appraisal can move a stalled claim forward, or it can complicate it. Reviewing your policy and the facts before choosing is worth the time.
Davila Cobos Law Firm, PLLC represents clients in San Antonio and Laredo. Learn more about our insurance claim denial attorney services, or contact the firm to discuss your situation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Every situation is different, so talk to a Texas attorney about yours.
