In general: When a policy contains an appraisal provision and the insurer and policyholder disagree about value, each side may select a competent appraiser. If the appraisers cannot agree, an umpire may become involved. The precise procedure, costs, deadlines, and effect of an award depend on the contract.
Appraisal usually addresses amount—not coverage
An appraisal process commonly concerns the value of the vehicle or the amount of covered damage. It may not decide whether a loss is covered, whether an exclusion applies, or other legal and policy-interpretation disputes.
Read the policy before sending a demand
Do not rely on another carrier's clause or an online template. Obtain the declarations, endorsements, and complete policy form in effect on the loss date. Look for:
- Who may demand appraisal and how notice must be delivered
- Deadlines for selecting appraisers
- Required qualifications or impartiality
- How an umpire is selected
- How fees and expenses are divided
- What signatures are required for an award
- Any conditions that must be satisfied first
Prepare the valuation before invoking appraisal
Appraisal is not a substitute for evidence. Before using the clause, confirm the vehicle's configuration, collect pre-loss documentation, review the insurer's valuation, research appropriate comparable vehicles, and identify the supported difference in value. This also helps determine whether the potential increase justifies the cost and time of the process.
Select the appraiser carefully
The appraiser should understand vehicle valuation, comparable-market research, condition analysis, equipment differences, and the specific policy process. Specialty, enthusiast, collector, commercial, and unusually configured vehicles may require additional experience.
Consider resolution before escalation
A documented request for reconsideration may resolve clear report errors without formal appraisal. If the dispute remains, the clause may provide the next contractual step. Do not miss any time limit while discussions continue.
How TrueAuto can help
TrueAuto can review the policy language and valuation materials, explain the technical valuation issues, and determine whether the evidence supports moving forward. We do not guarantee an outcome and do not provide legal advice.
This article is general educational information, not legal advice. Policy language and claim facts vary. Consult a qualified attorney for legal interpretation or rights.