Most homeowner’s insurance policies have an appraisal clause in which it generally states, if the policyholder and the insurance carrier disagree, than an appraisal of loss may be made. This means that the policyholder and the insurance carrier will each select a competent appraiser. The two appraisers will select an umpire. The appraisers will state separately their amount of the loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will pay its chosen appraiser, and bear the expenses of the appraisal and umpire equally. Both parties must agree to the appraisal, and to be bound by the results of that appraisal.

This insurance clause has been around for many years, but is rarely use. Why? Because most policyholders do not know that it exist. And most insurance agents and adjusters forget about the clause being in the policy. If it was used more often, most property loss claims would be settled more quickly, and at less cost & aggravation for both parties involved. This process also gives the policyholder piece of mind that they received the appropriate settlement for their loss. As the cost of insurance continues to increase yearly, along with other expenses to maintain and protect your home, it makes sense to be properly reimbursed for your property losses.