How To Invoke Appraisal

How to Invoke Appraisal

Did your insurance company miss damages within the scope of repairs or provide low-ball figures that simply do not add up? By now, you have likely heard about the appraisal clause contained within your insurance policy. In short, either you or your insurance company can demand appraisal, which is a formal process used to resolve disputes regarding the amount of loss associated with your insurance claim.

Appraisal has become increasingly common as policyholders continue facing delayed claims, incomplete estimates, under-scoped damages, and inconsistent communication from insurance carriers. While insurance companies are expected to handle claims fairly and in good faith, many claim files are managed by overworked adjusters operating under strict internal carrier guidelines and limited authority. As a result, damages are often overlooked, improperly priced, or intentionally minimized during the adjustment process.

Most insurance policies contain language explaining how appraisal works and outlining specific requirements that must be satisfied before appraisal can proceed. Some policies may require a written demand for appraisal, competing estimates, sworn proof of loss documentation, or compliance with post-loss obligations before the carrier will acknowledge the process. However, policy language does not always align with state statutes or case law governing appraisal rights. In many situations, insurance companies rely heavily on internal procedures that may conflict with the insured’s rights under state law. Because of this, it is imperative to review applicable state statutes and policy language carefully prior to invoking appraisal.

Consult With a Public Adjuster Before Invoking Appraisal

Before moving forward with appraisal, it is in your best interest to review your claim with an experienced insurance professional such as a Public Adjuster. Appraisal is not simply about selecting a number higher than the insurance company’s estimate. It requires strategy, documentation, policy interpretation, construction knowledge, negotiation skills, and an understanding of how insurance carriers evaluate losses.

At Manhattan Public Adjustment, we offer a free strategy session at no cost to you. During your consultation, an experienced insurance professional will review your claim, discuss the issues surrounding your loss, and determine how we may assist throughout the claims process.

Many clients tell us they wish they had contacted us from the beginning of their claim. Time is critical in every insurance loss. Delays in documentation, missed damages, poor communication, or improper claim handling can significantly affect the outcome of your settlement. We specialize in high-end construction losses and understand the complexities involved with property damage claims throughout New York City, the Boroughs, and the Tri-State Area.

Why Appraisal Has Become So Common

Disagreements with insurance companies are unfortunately very common today. Carriers frequently issue diminished estimates that fail to account for the true cost of repairs, building code upgrades, hidden damages, overhead and profit, or specialty construction requirements. In many cases, insureds struggle to even communicate directly with the adjuster assigned to their claim.

Many policyholders experience:

• Delayed claim handling
• Incomplete inspections
• Frequent adjuster reassignment
• Undervalued repair estimates
• Denial of code-required repairs
• Improper depreciation calculations
• Difficulty obtaining claim updates

Because of these recurring issues, appraisal has increasingly become the standard mechanism used to resolve valuation disputes between policyholders and insurance carriers.

Collect and Organize Your Documentation

One of the most important steps in the appraisal process is properly documenting your claim. This stage should never be rushed. Incomplete documentation often results in incomplete settlements.

Depending on the complexity of the loss, documenting your claim may require working with:

• Estimators
• Emergency mitigation contractors
• Engineers
• Architects
• Electricians
• Inventory specialists
• Roofing contractors
• Code consultants
• Housing vendors

Supporting documentation may include photographs, videos, moisture readings, repair estimates, invoices, engineering reports, temporary repair receipts, code citations, and proof of emergency services performed at the property.

This process is often tedious, highly detailed, and best handled by an experienced insurance professional who understands both construction and insurance claim presentation. Missing damages, failing to document code requirements, or overlooking hidden conditions can lead to inaccurate settlements and additional out-of-pocket costs later in the repair process.

Once your documentation is properly assembled, provide the compiled claim information to your insurance carrier along with your formal demand for appraisal. Be sure to include your selected appraiser’s name and contact information.

Selecting the Right Appraiser

Choosing a qualified and impartial appraiser can be one of the most important decisions you make during the appraisal process. A strong appraiser should possess a deep understanding of construction, repair methodology, insurance policy interpretation, and the appraisal process itself.

When vetting an appraiser, look for qualities such as:

• Independence and objectivity
• Strong construction and damage knowledge
• Attention to detail and documentation
• Communication and negotiation skills
• Professionalism and credibility
• Time management and responsiveness
• The ability to handle conflict professionally

A reputable appraiser should also understand the distinction between disputes involving valuation versus disputes involving coverage. In most situations, appraisal is intended to resolve disagreements regarding the amount of loss—not questions regarding whether the policy provides coverage in the first place.

Unfortunately, not all appraisers operate ethically or professionally. Warning signs may include unrealistic promises, inflated estimating practices, poor documentation habits, disorganization, hostility toward opposing parties, lack of licensing knowledge, or refusal to explain estimating methodology. Choosing the wrong appraiser can negatively impact both the appraisal process and the credibility of your claim.

Once you select your appraiser, provide them with as much documentation and claim detail as possible. Thorough communication and organized documentation significantly improve the likelihood of a favorable appraisal outcome.

Invoking Appraisal

Invoking appraisal can sometimes be as simple as sending your insurance company a formal written demand for appraisal. The demand should clearly state that you disagree with the carrier’s valuation or scope of damages and wish to invoke the appraisal clause contained within your insurance policy.

Example language may read:

“I am not in agreement with the scope and/or valuation of the loss and hereby invoke the appraisal provision contained within my insurance policy. I designate __________ as my appraiser. Their contact information is as follows: __________.”

Your demand should include all pertinent claim-related information, including:

• Claim number
• Policy number
• Date of loss
• Property address
• Named insureds
• Supporting estimates and documentation
• Your selected appraiser’s contact information

It is recommended that you send your demand via email and additionally through certified mail whenever possible. Maintaining organized records of all communications and documenting carrier response timelines can become extremely important later in the process if disputes arise regarding compliance or delays.

After appraisal is invoked, the insurance company will typically select its own appraiser. The appraisers will review the damages, exchange estimates and documentation, and often conduct joint inspections of the property. If the appraisers cannot agree on the amount of loss, an umpire may be selected to assist in resolving the dispute. In many cases, an agreement signed by any two of the three parties becomes binding regarding the amount of loss.

When Appraisal Is Rejected or Revoked

Your appraisal demand may not always be accepted immediately. Insurance companies frequently deny or delay appraisal for a variety of reasons. Every carrier operates under different internal guidelines, and some carriers aggressively challenge appraisal demands to delay claim resolution.

One of the most common reasons appraisal is denied is because the carrier argues the dispute involves coverage rather than valuation. Other common reasons include:

• Alleged lack of coverage
• Insufficient documentation
• Pre-existing damage allegations
• Wear and tear exclusions
• Scope versus pricing disputes
• Errors or inconsistencies within the claim
• Late reporting or missed deadlines

Some carriers may also attempt to revoke appraisal after initially acknowledging the process, particularly when large claim values or complex damages are involved.

If you believe your appraisal demand was denied improperly, you should consider contacting your state Department of Insurance and filing a formal complaint. Include organized supporting documentation, policy language, carrier correspondence, and a detailed timeline of events. If your Department of Insurance is unresponsive or ineffective, you may also consider consulting with legal counsel or continuing to work with an experienced Public Adjuster to protect your interests.

Final Thoughts

Determining whether appraisal is appropriate and properly invoking appraisal are only the initial steps within the broader insurance claims process. Missing deadlines, using incorrect verbiage, failing to document damages properly, or misunderstanding policy language can all result in additional money coming out of your pocket.

Your insurance company is supposed to be there for you during a loss. Unfortunately, many claims today are handled through rigid carrier protocols by adjusters who lack the time, authority, or construction knowledge necessary to properly evaluate complex damages.

Hiring a Public Adjuster from the beginning of your claim is often the best way to protect yourself—especially if your claim eventually enters the appraisal process. Proper documentation, strategic claim handling, and experienced negotiation can make a significant difference in the outcome of your settlement.

If you are dealing with an underpaid claim, delayed settlement, or appraisal dispute, contact Manhattan Public Adjustment for a free consultation. We are here to help guide you through the claims process and advocate for the settlement you deserve.