- TEXAS INSURANCE APPRAISAL SERVICES
Disagree With Your Insurance Company's Estimate? Appraisal May Be an Option.
When you and your insurance company cannot agree on the cost of repairing or replacing damaged property, your insurance policy may provide a process for resolving that disagreement through appraisal.
- WHAT IS INSURANCE APPRAISAL?
Understanding the Insurance Appraisal Process
Many residential and commercial property insurance policies contain an appraisal provision intended to help resolve disagreements over the amount of a covered loss.
When appraisal is properly invoked, the policyholder and insurance company each select an appraiser. The two appraisers independently evaluate the disputed damage and attempt to agree on the amount of loss. If they cannot reach an agreement, their differences may be submitted to a third individual known as an umpire.
An agreement between two members of the appraisal panel generally establishes the appraisal amount of loss, subject to applicable policy terms and legal requirements.
Important to Understand
Appraisal focuses on determining the amount of loss. It does not independently establish whether the insurance policy provides coverage for that loss.
The Appraisal Panel
An appraisal award is generally established through agreement between both appraisers or one appraiser and the umpire.
Policyholder's Appraiser
Selected by the policyholder to evaluate the disputed damage and amount of loss.
Insurance Company's Appraiser
Selected by the insurance company to evaluate the disputed damage and amount of loss.
Umpire (If Needed)
If the two appraisers cannot agree, their differences may be submitted to an umpire.
When Appraisal May Not Be Appropriate
Appraisal is generally not intended to resolve disputes that concern only whether the insurance policy covers the reported loss.
Those matters may involve questions of policy interpretation or legal coverage that require a different approach.
However, some disputes involve both valuation and coverage questions. Texas courts have recognized that the presence of coverage issues does not necessarily prevent appraisal of a disputed amount of loss.
- WHEN IS APPRAISAL APPROPRIATE?
When the Disagreement Involves the Amount of Loss
Appraisal may be an option when the insurance company has evaluated the loss, but the parties disagree over the amount necessary to repair or replace the damaged property.
Differences in Repair Estimates
The insurance company's estimate may be substantially lower than the cost identified through an independent damage assessment.
Disagreements Over Repair Scope
The parties may disagree about which damaged building components require repair or replacement.
Construction Methods and Repair Costs
Disagreements may involve labor, materials, quantities, or the appropriate methods for restoring affected building components.
Personal Property Valuation
Depending on the policy and circumstances, appraisal may help resolve disagreements over the value of damaged personal property.
- HOW DOES THE APPRAISAL PROCESS WORK?
HOW DOES THE APPRAISAL PROCESS WORK?
We handle the technical details so you can focus on your property and your future.
Review the Policy and Disputed Estimate
Understand the applicable policy provisions and identify the specific amounts in dispute.
Selection of Appraisers
The policyholder and insurance company each select an appraiser. Appraisers should meet the qualifications and independence requirements applicable to the policy.
Evaluation of the Loss
Appraisers evaluate the disputed damages and supporting documentation, which may include property inspections, repair estimates, and construction methods.
Appraisal Award
If the appraisers agree, they may issue an appraisal award. If they disagree, an umpire may be involved to resolve the differences. The award may be binding as to the amount of loss, subject to the policy and law.
- WHY TECHNICAL EXPERIENCE MATTERS
An Accurate Appraisal Requires More Than Comparing Two Estimates
Disagreements over insurance estimates often involve technical questions about the extent of damage, construction methods, and the cost of necessary repairs. Our background in insurance adjusting, property damage inspections, construction estimating, and restoration procedures provides valuable experience when evaluating these differences.
Insurance Adjusting
Understanding insurance estimates and claims
Xactimate Estimating
Detailed repair scopes and cost analysis
Property Restoration
Evaluating repair methods and damaged materials
Residential & Commercial Claims
Experience with varying property types and losses
- APPRAISAL VS. SUPPLEMENTAL CLAIMS
Understanding the Difference
Not every disagreement requires appraisal. In some cases, newly discovered damage, contractor estimates, or additional documentation may be sufficient for the insurance company to reconsider its original assessment.
Other disputes remain unresolved despite continued communication and supporting documentation. When that occurs, the appraisal provisions of the insurance policy may offer another means of determining the amount of loss.
Yes. Receiving a payment does not necessarily mean you have accepted the settlement or that the claim is closed. If you believe the payment does not reflect the full amount of loss, you may still be able to invoke the appraisal provision in your policy.
No. Appraisal is generally intended to resolve disputes over the amount of a covered loss. It does not determine whether the insurance policy actually provides coverage for the damage in the first place. Coverage disputes are typically handled separately
Under most policies, each party pays for their own appraiser. The cost of the umpire (if one is needed) is usually split equally between the policyholder and the insurance company.
No. Appraisal results in an award determining the amount of loss, but it cannot guarantee a specific payment amount. The final payment will depend on the appraisal award, your policy limits, your deductible, and any prior payments made by the insurer.
- FREQUENTLY ASKED QUESTIONS
