If you recently filed an insurance claim and are in disagreement with your insurance company over the amount of your compensation, a home appraisal may be in order. An appraisal from an impartial group, such as 6060 Appraisal Group, can settle the amount of the insured loss by completing an unbiased appraisal of your home.
As an official contractual process designed to resolve disputes between an insurance company and a policyholder, appraisal is commonly employed by homeowners across the nation.
Before an appraisal can be completed, the policyholder and the insurance company have to have genuinely tried to come to an agreement on the value of the loss. Appraisal can’t be immediately employed upon the first disagreement – an attempt to resolve the issue must have been made.
The appraisal process starts with a disagreement between the property owner and the insurance company over how much of the loss should be covered by the insurance policy. One party then requests an appraisal, thus instituting the appraisal clause. Each party selects an appraiser the value the damage to ensure impartiality.
A Competent and Disinterested Appraiser
Under law, the appraiser in a dispute between an insurance company and policyholder must be “competent and disinterested”. “Disinterested” means that the appraiser must not be prejudiced or biased. This also means that the appraiser shouldn’t often carry out appraisals for one of the parties, as this could create a bias. Competency is also crucial, as it ensures that each party’s appraiser is able to properly carry out the process for a fair result.
The two appraisers choose an umpire in the case that they’re not able to agree. The umpire will make a decision based on the disagreements between the two appraisers if they don’t settle on the amount of the loss. Once the amount is settled, whether by the two appraisers or the umpire, the compensation is paid to the property owner. The amount decided upon by the appraisers or the umpire is binding and must be paid to the policyholder by the insurance company. Two or three appraisal panel members will provide signatures to execute the appraisal award. Alternatively, to execute the appraisal award, all three of the members may agree unanimously.
When it comes to settling insurance claim disputes, completing an insurance appraisal is one of the most effective methods. It’s a clear, impartial process to ensure that the policyholder receives a fair amount of compensation for the value of his or her home.
Factors in Insurance Appraisals
During an insurance appraisal, the appraiser will check for many different factors to evaluate the total amount of the loss. These factors may include:
- The age of the home
- The size of the lot
- The square footage of the home
- The amount of bedrooms and bathrooms
- The view from the home
- The location of the home
- Any renovations that have been made to the home
- The overall condition of the home
- The contents of the home
In addition to checking for these factors, the appraiser will use other homes around your location as a point of comparison for your home. This is helpful in providing context for the value and condition of your home. Given that an appraisal is intended to give as accurate of an evaluation of your home’s value as possible, all information available to the appraiser is beneficial.
Finding The Right Appraiser
The appraiser that you select in the event of a dispute with your insurance company will make an impact on the smoothness of the process. It’s crucial to choose an appraiser with extensive experience in insurance appraisals. This will ensure that your appraiser has the knowledge, negotiation skills, and expertise to seamlessly carry out the appraisal process. Choosing an inexperienced appraiser could lead to further problems with an insurance claim and may prolong the claim process even further.
6060 Appraisal Group has decades of experience in carrying out insurance appraisals. By offering a well-balanced take on any scenario, we can help secure the proper value of insurance compensation for a loss. For more information, please contact us today.