A property claim can often be an extremely confusing process. If you are a homeowner who has never had to file a claim before, understanding this process become frustrating at times. There is a lot of language and shorthand phrases used to discuss the storm damage to your property, that if not explained, can leave a homeowner confused and searching for answers. It's important to understand the process. This will allow you to ensure that you are receiving an appropriate award from your insurance. You want to make sure you are able to hire the best contractor to do the repairs to you dwelling. As a general contractor , 3:16 Roofing & Construction strives to make the repair process as easy to navigate as possible.
What Is an Appraisal in Insurance Claims?
An appraisal is an expert estimate of the value of something. When you file a claim for storm-damaged property, your insurance carrier will typically send an adjuster to inspect the damage. The adjuster will write an estimate for the cost to repair the damaged property if it's covered under your policy. This estimate, often called a "scope of work," serves as a baseline for repairs.
If the adjuster overlooks any damaged areas, you can usually address this by sending photos and requesting that they be added to the estimate. This process is known as a supplement and is commonly handled by your contractor to document additional damages that may have been missed.
But what if your preferred contractor's estimate is higher than the amount your insurance company has agreed to pay? Don't worry—you might not have to cover the difference out of pocket.
Understanding the Insurance Appraisal Process
The appraisal process is your right as a homeowner to obtain an unbiased third-party opinion regarding the damage to your property. Similar to an appraisal when buying or selling a home, an insurance appraisal helps all parties determine the appropriate repair methods and fair replacement costs for the damaged property.
While your insurance carrier aims to help you recover from your loss, they may not be entirely unbiased. Insurance companies have standard operating procedures that dictate what they can and cannot cover. You might find yourself unable to restore your home to its pre-storm condition because the insurance company disagrees with your preferred repair methods or costs.
An Example Scenario
Imagine you received a beautiful outdoor vase as a gift. A recent hailstorm shattered it. Your homeowners policy likely covers this loss. However, the insurance adjuster claims they found a similar vase online for $50, while you know it will cost around $400 to replace.
Here, there's a disagreement over the cost of repair. You believe the vase is worth $400, but your insurance carrier values it at $50. In such cases, you have the right to invoke appraisal, notifying your carrier in writing that you wish to enter the appraisal process. If the adjuster is unwilling to accept your estimated repair cost, invoking appraisal may be your best option to receive fair compensation.
How Does the Appraisal Process Work?
According to Miller Public Adjusters, "Appraisal is a binding contractual process available to settle valuation disputes between policyholders and their insurance companies." To initiate appraisal, either you or your insurance carrier must submit a written request to act upon the policy's appraisal clause. Many policies require the carrier to respond within 20 days.
Steps in the Appraisal Process
Selection of Appraisers: Both you and the insurance company choose your own licensed, independent appraisers.
Evaluation of the Claim: The appraisers assess the damage and attempt to agree on the repair methods and costs.
Appointment of an Umpire: If the appraisers cannot agree, they select an umpire—a neutral third party—to make the final decision.
Final Decision: Once a valuation of loss is reached, either by agreement between the appraisers or by the umpire's decision, it is binding. The insurance company must adjust your claim accordingly.
Benefits of the Appraisal Process
Unbiased Evaluation: Transfers the responsibility of valuing the loss from the insurance company to an impartial appraiser.
Fair Settlement: Helps you receive a fair settlement based on an objective assessment of the damage.
Binding Decision: The final valuation is binding, ensuring that the insurance company must honor the appraiser's decision.
Note: Appraisers cannot negotiate policy coverage, provisions, or deductibles. If you believe you're not receiving appropriate coverage based on your policy, consider hiring a public adjuster for assistance.
Your Next Steps
Before contacting an appraiser, it's wise to have a qualified company inspect the damages to your property to determine the recommended repair methods. The more knowledge you have about your loss, the better equipped you'll be to negotiate fair coverage.
Contact Us for a Complimentary Inspection
At 3:16 Roofing & Construction, we're here to help you navigate the complexities of the insurance claim process. Contact us today to schedule a complimentary, no-obligation inspection!
For more detailed information on the roof appraisal process, please visit our guide: Roof Appraisal Process.
3:16 Roofing & Construction is a licensed contractor located in Keller, TX. We service the entire Dallas-Fort Worth metroplex. Our company offers the best warranties in the industry, including a 5-year workmanship warranty. We take pride in our work knowing it's done with honesty and integrity. To us, it's more than just a roof. It's home, it's family.
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