The Appraisal Provision of Your Homeowners’ Policy May Increase Your Odds of Receiving an Appropriate Settlement
You purchase homeowners’ insurance in case the worst comes to pass, and your home sustains serious damage. Buried within the contract is something called the appraisal provision, or appraisal clause. The International Risk Management Institute defines this as a “property insurance provision allowing either the insurer or the insured to demand a binding appraisal of damaged property in the event of a dispute as to its value and establishing the required appraisal procedure.”
So what does this mean? Let’s say your home is damaged in a fire, and your insurance company offers you a settlement amount that is not sufficient to cover the damage caused. If the policy allows, you can invoke your “right to appraisal.” Very generally speaking, appraisal is where you (the policyholder) and the insurance company engage in a process that ultimately leads to a panel of three third-party neutrals setting the dollar value of damage caused by the loss. Note that the appraisal process only leads to the setting of the dollar value of covered damage; it does not resolve coverage disputes.
If you decide to invoke your right to appraisal, then the next step is finding an appraiser you can trust to do the work. This is an out-of-pocket expense, so you want to choose the right person to help you make your case. Some options are public adjusters (adjusters licensed by the State of Tennessee; not affiliated with insurance companies), engineers, contractors, lawyers, etc. Your selection of the correct appraiser is critical because without an experienced person at the reigns the appraisal process will be doomed to failure.
If you are unsure about your appraisal rights or how should proceed, just ask us. At McWherter Scott & Bobbitt, we protect the rights of policyholders every day. Our Tennessee insurance dispute lawyers can show you how to find the right appraiser for your needs. We can also handle complex claims of bad faith, should it prove that the insurance company has acted negligently or fraudulently.
To learn more about our services, or to schedule an appointment with a Tennessee insurance dispute attorney like Jonathan Bobbitt, Clint Scott or Brandon McWherter, we invite you to call 731-664-1340 or fill out our contact form. We maintain offices in Nashville, Chattanooga, Memphis, Jackson and Knoxville for your convenience.
One of the Mid-South’s Super Lawyers, Jonathan Bobbitt is a civil trial lawyer that has one singular focus – to obtain the best possible result for his clients. Passionate, thoughtful and relentless, this guy loves to spend his free time running 50-plus miles through mountains, deserts and country roads. Learn More