How does the Appraisal Process work?
In application, the Appraisal Process is very similar to arbitration. An Appraisal Panel is selected to review the damages and relevant documentation. The panel will work through the process and make a binding determination as to the amount of the loss.
When the Appraisal Clause is invoked, the insurance company and the insured each select their own Appraiser. The two appraisers then select one neutral umpire creating the Appraisal Panel. The Panel reviews the damages and other relevant documentation and holds hearings to discuss the items in dispute.
Once at least two of the three members on the panel reach an agreement as to the loss and damage they sign what is known as an “Appraisal Award” and the appraisal process is completed. The insurance company must issue payment within thirty days of the signing of the Award. This award is binding on both the insurance company and the policyholder.