Not necessarily true. It used to be that most every Homeowners policy were the same. That is no longer true, and many insurance companies have changed their appraisal terms. Depending on which policy you bought and from which insurer, going to appraisal (invoking appraisal) could be a good idea or a VERY BAD IDEA!!!

Not every loss is a candidate for appraisal, though many disputes and differences can be resolved fairly through insurance appraisal.

Not true. In some states an appraisal can include determining cause of loss (How the damage happened) which can be the reason for a DENIAL.

Example: The carrier's adjuster said this is not hail or it's old hail damage from an earlier storm and you, your contractor believe it is damage caused by hail and from the most recent storm.

So yes, in some states this can be appraised. However, in other states that is not true. In fact, even in states such as Colorado where cause of loss is part of appraisal, it is only part of appraisal if the policy allows it. In other words, the terms of the appraisal clause within your policy dictate whether cause can be appraised or NOT!

It often comes down to what state you live in, what carrier sold you your policy, and what the policy states.

The best appraisers can help you figure out if your claim is ripe or right for appraisal.

Yes & NO... In some states this is true however in others such as Colorado, it is not true.

In Colorado Appraisers must be impartial. — not biased toward either party. The carrier's appraiser nor the insured's appraiser can be advocates of the party that hires them.

How does that work? The best appraisers advocate for a fair award which is based on restoring your home to pre-loss condition. Advocating for the carrier or insured is not necessary to get a fair award. Being skilled, having a plan of action that is executed successfully is almost always necessary.

Not True. In fact, both should read your policy. The best Appraisers obtain the policy and read it. It's considered by the industry to be APPRAISAL BEST PRACTICES.

Appraisers musty read your policy because it provides the terms of appraisal. If your appraiser does not read your policy, they could jeopardize the award, and you could spend your hard-earned money for nothing.

The policy provides the appraisers the Rules! What can and cannot be done and how it is to be done.

Appraisers are tasked with providing an award detailed and categorized so that the carrier can apply coverage, apply the policy to the award. To do this the appraisers should be categorizing the loss so that the carrier can do this, which means reading the policy and determining what categories are to be used.

Often the disputes, the impasse, the differences between the insured and the carrier, that cause a claim to go to Appraisal can be boiled down to the insured has not proven their estimated costs are reasonable.

Part of doing that is categorizing the loss so that the Carrier can apply coverage.

The best appraisers will determine what is damaged, what the materials are, what methods are best for restoring the useful life of those materials, if the useful life can be restored or does the damage warrant replacing the material, and the costs associated with the restoration's operations. THEN, once the appraiser has a solid position, they must prove it is reasonable to the opposing appraiser and or the umpire if the two appraisers cannot agree,

There are no guarantees. No one can guarantee and outcome or an award amount.

The best appraisers will be able to review your claim components and provide you with potential positions. The positions an appraiser takes should be sound and not a wish list.

Often appraisers know propensities of certain carriers, especially those that may try to choose a biased appraiser or umpire to gain an advantage and relay that information to you before you invoke appraisal.

It Depends. The truth is not universal. The policy you purchased and the insurance company you purchased it from have a lot to do with whether an insurance appraisal is a good idea or a bad idea.

Some policies are not well suited for appraisal.

Some claims are not well suited for the courts.

You should always interview a few attorneys when deciding whether to invoke an appraisal or file suit against the insurer.

Some policies are written by the carrier to discourage the insured from appraisal and in that situation, it would depend on your claim. Other policies are written to advantage the insurer and for those policies, most legal minds would recommend suing the insurance company when you are at an impasse rather than invoking appraisal.

What if you decided not to invoke appraisal and not to hire and attorney and just take your lumps?

This could be even worse.

Real Story (abbreviated): Insured accepted the insurance company's settlement, did the work the way it was estimated by the insurer and still lost nearly $60,000 because 4 years later the insurer threatened to cancel their policy if the homeowner didn't replace their siding. All because they accepted the settlement and did not restore their home properly.

All three options come with risk, knowing the facts, knowing the odds, knowing the ramifications of whether you stay or move forward is an important factor when making your informed decision.

In most states each party pays their own appraiser... you, the insured, pay for your appraiser and the carrier pays for their appraiser.

Are there other costs? There can be. Most policies state that if there are other reasonable costs, they are split between the carrier and the insured and the same is true for the umpire fee, if the umpire is needed.

It Depends. Some insureds seek out the least expensive, though the Latin phrase Caveat Emptor comes to mind... buyer beware. Ever hear, you get what you pay for?

Do you want the least expensive surgeon operating on your heart or brain? Most of us want the best.

Don't be the insured that pays an appraiser a flat fee of $500 and gets an award commensurate with that fee, thousands of dollars less then they needed.

The fact is the best appraisers often charge higher fees. Those same appraisers will be honest with you about the potential position they would take and the likelihood or odds of success. Good professional ethical appraisers will not take an appraisal unless the value for the insured is there.

True Life Example: Two houses in the same HOA on the same block built the same year both damaged by the same storm, and both were appraised. One appraiser was certified and the other was not. One appraiser had a plan of action and the other did not. One owner wanted their home restored properly, the other didn't know the difference. One chose an appraiser carefully, the other didn't. One appraisal resulted in a fair award of over $90,000... and the other was awarded less than $40,000.

If you don't care, then both were successful. If you are adamant about your home being properly restored, then choose your appraiser wisely. The story is not about an insured getting way to much or way to little, the story is about what really happened and means understanding what you want from an appraisal is very important.

Timing is absolutely critical to an appraisal. The timeliness of a demand for appraisal or invoking appraisal is crucial. An appraisal request must be made within a "reasonable time," though the specific time period can vary. Courts generally consider whether the insurer's participation in the process is impaired by the delay; whether good faith negotiations took place before a demand was made; and whether the demand for appraisal was proper under the circumstances. Unreasonable delays may be considered a waiver of the right to appraisal.

Just as important is if the insured waits too long to invoke an appraisal and by the time the appraisal award is agreed to a policy may make the point moot. The best appraisers will explain this in detail if your situation has time concerns.

Appraisal awards are generally binding but can be vacated by a court under specific circumstances. These usually include if there was evidence of fraud or misconduct by an appraiser or umpire, if the award was not made in accordance with the terms of the insurance policy, if the appraisers or umpire acted outside the scope of their authority, or if the award is the result of bias or corruption. The burden of proof to vacate an appraisal award is exceptionally high, and most awards are upheld.

Choosing the right appraiser is important.