What is An Insurance Claim Appraisal?

If we and you disagree on the amount of loss, either may make a written demand for an appraisal of the covered loss.  Each party will select a competent and impartial appraiser and notify the other of the appraiser selected within 20 days of the demand.  Most insurance policies contain a provision which stipulates that either the insurance company or the insured has the right to demand an "Appraisal" if that party disagrees as to the amount of the insured loss.  The purpose of the Insurance Claim Appraisal process is to offer both parties a less expensive and more expedient alternative to going to court in order to reach a settlement.  Appraisal has many similarities to binding arbitration, but the two processes are not identical.  The Appraisal Panel is made up of three participants.  Therefore, the insurance company and the insured both select a competent, impartial Insurance Claim Appraiser to represent them in the process.  Before the Appraisal Process begins, the appraisers agree to a neutral Umpire.  If needed, the the umpire will make a final ruling on the difference of the two appraisers.  An appraisal award is a valid and binding award, once two of the three members of the Appraisal Panel agree and sign the award.