The Appraisal Clause and how it applies to your total loss and diminished value claims:
The appraisal clause is afforded to an, "insured," in a first party insurance claim. For more information on difference between first and third party claims, click here. In your insurance policy there will be a section that is usually referred to as, "the appraisal clause," "appraisal," or, "rights of appraisal." This section of the policy will state something similar to:
"If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraiser's will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expense of the appraisal and umpire equally.
So let's break that down. The appraisal clause is invoked when there is a dispute in value. This dispute could arise from a disagreement in the settlement value of your totaled vehicle. In instances where the owner of a classic car or an antique automobile is trying to have their vehicle properly insured to be certain that it is fully covered, there may be a dispute in the appropriate insurable value. Currently, one of the most hotly contest automotive value disputes has to do with diminished value. Finally, it is possible there could be a dispute between the insurance company and the body shop you selected to complete the repairs on your vehicle. For example, your body shop completes an estimate that calls for $10,000 in auto repairs. A representative from the insurance company appraises the vehicle and determines that the repairs should be $8,500. The shop either has to cave to the power of the insurance company, potentially leaving you with a poorly repaired car or you have to pay the $1,500 difference. Sometimes both can occur!!!
If you don't feel that you have been made a fair offer the appraisal clause states that you have the right to contact us for an independent appraisal.
The appraisal clause is afforded to an, "insured," in a first party insurance claim. For more information on difference between first and third party claims, click here. In your insurance policy there will be a section that is usually referred to as, "the appraisal clause," "appraisal," or, "rights of appraisal." This section of the policy will state something similar to:
"If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraiser's will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expense of the appraisal and umpire equally.
So let's break that down. The appraisal clause is invoked when there is a dispute in value. This dispute could arise from a disagreement in the settlement value of your totaled vehicle. In instances where the owner of a classic car or an antique automobile is trying to have their vehicle properly insured to be certain that it is fully covered, there may be a dispute in the appropriate insurable value. Currently, one of the most hotly contest automotive value disputes has to do with diminished value. Finally, it is possible there could be a dispute between the insurance company and the body shop you selected to complete the repairs on your vehicle. For example, your body shop completes an estimate that calls for $10,000 in auto repairs. A representative from the insurance company appraises the vehicle and determines that the repairs should be $8,500. The shop either has to cave to the power of the insurance company, potentially leaving you with a poorly repaired car or you have to pay the $1,500 difference. Sometimes both can occur!!!
If you don't feel that you have been made a fair offer the appraisal clause states that you have the right to contact us for an independent appraisal.
12850 Hwy 9 N, Ste 600-343
Alpharetta, GA 30004
Phone: 404-643-9123
Fax: 770-667-1310
Alpharetta, GA 30004
Phone: 404-643-9123
Fax: 770-667-1310