What is insurance appraisal?
Many times contractors, or home and business owners find themselves in disagreement with the insurance company on the extent of damages or the amount of money it will cost to repair the damages they’ve experienced during a loss. When the insurance company refuses to bend, you have the option to demand appraisal. The Appraisal Clause, also know as The Appraisal Provision, allows you to have two third parties separate from the Insurance Company voice their opinion on your damages, and amount to be paid. It’s been described sort of like court arbitration, but without courtrooms, lawyers, or judges.
Most policies have an “Appraisal Clause”. You can usually find it in your policy under the “Conditions” or “What to do after a loss” segment. If you have trouble finding it, call one of our specialist, who can assist you. An Appraisal Clause will usually read something like this:
If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal. If either makes a written demand for appraisal, each shall select a competent, independent appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any two of these three shall set the amount of the loss.
Don’t be afraid to invoke appraisal; it is the right of the policyholder. Appraisal is designed to keep the insurance company in check and will allow what’s fair for the job.
Sometimes when things arise during a job that were unexpected, someone will need to go back and ask for additional monies to cover the cost of that portion. This is called supplementing. Supplementing can also be done when there is a dispute over a portion of the estimate or project, or when something was left off of the original estimate, but the work has been performed. This can cost a contractor a lot of time! We make it fast and easy and take the burden off of the contractor. Eagle Eye Estimates requests supplements from the carrier, as a bargaining chip to stay out of the appraisal process. If the carrier refuses to grant the supplement, we then move forward in appraisal for the remaining money owed on the job. With years of experience we have found that this is very effective.
Cost of Appraisal and Supplementing
Eagle Eye Estimates charges 10 % of the increase on Supplements and Appraisals or 3 % of the total RCV, whichever is more. Payment is not due for appraisals, until the appraisal award is received. On supplements, the payment is due once Eagle Eye Estimates receives written confirmation of the awarded amount from the carrier.