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Appraisal Services for Policyholders

When a dispute arises between policyholder and insurance company on the amount of loss or the extent of damages, the claims process can grind to a frustrating halt. Many policyholders think they have no choice but to accept what the insurance company offers, but there are alternatives when you and your insurer are in disagreement. If you believe the amount offered to settle your claim is inadequate or unfair, and the insurance company is unwilling to negotiate, it may be time to invoke the Appraisal Clause in your policy.

Appraisal is a binding contractual process available to settle disputes between policyholders and their insurance companies when they fail to agree on the amount of loss or the scope of damages for residential or commercial buildings. Either the policyholder or the insurance company may initiate the appraisal clause, which is usually done in writing. Coverage disputes cannot be decided by appraisal.

Unlike insurance mediation, the outcome of the insurance appraisal process is binding once an award is signed. The appraisal clause (sometimes referred to as statutory appraisal) can be found within the Conditions section of your policy.

How does
the Appraisal Process

Appraisal is similar to arbitration, but it has many advantages over litigation. It is a contractual (in many states, statutory) requirement for resolving these types of disputes. During an appraisal, the case is typically resolved by industry experts rather than leaving the decision in the hands of a jury whose members may have no experience in identifying and valuing property damages. This means that appraisals are typically resolved significantly faster than with litigation, and at a much lower cost.

In an appraisal, each party selects a competent and disinterested professional appraiser to evaluate the claim, value of the property or amount of the loss. After thorough examination, the appraisers each make their professional determination of the property value or loss amount.

The two sides then come to a consensus on the appointment of an umpire, a competent, disinterested, impartial individual who is charged with deciding the value of property or the amount of a property loss. The umpire works to mediate the differences while listening to each side’s position, then makes a final and binding decision.

What Our Clients Have to Say

“I would like to thank you and Globe for the work you did on our behalf, following the terrible fire that destroyed our restaurant. I had no idea how much research, documentation and negotiation would be involved in seeking and reaching a just settlement from the insurers—but I have one now. Just thinking of how I might have attempted this effort on my own gives me real pause, because I really don’t think I could have done it. Without doubt, I would not have achieved the numbers that you were able to deliver. I simply wouldn’t have known how.”

Daniel Padnos
Vice President at Costa Azul Bar

“I was very pleased with the work that Globe Midwest Adjusters International has done for the District. They were very thorough in their research of the loss to present to the insurance company to counter the insurance company’s offer. The District has gotten an agreement with the insurance company for the loss on the building which ended up $1,300,000 larger than what the insurance company originally offered to the District.”

Kevin Januszewski
Executive Director of Business Services

“Your knowledge and attention to detail have been a huge benefit in settling our claims due to fires, hurricanes, and wind storm damage to several of our multi-family apartments throughout the country. Your professionalism and negotiation skills are second to none and are to be commended. Your knowledge of the insurance companies practices of minimizing claims and dragging out settlements, have afforded us expedient and higher settlements than we could attain on our own”

Stephen Braun
Senior Vice President

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