Step 1: A dispute arises over the VALUE and/or EXTENT of an insured loss
Step 2: Each side (insurer and insured) picks an appraiser, the appraisers pick the umpire/neutral
Step 3: The two appraisers try to reach agreement on some or all items in dispute
Step 4: As to remaining issues, the appraisers and umpire review documents, photos, evidence
Step 5: Deliberations/Voting
Step 6: 2 out of 3 agree = Write Up and Sign Decision OR 3 out of 3 agree (unanimous)
Step 7: Decision/”Award”
Step 8: Deliver Decision/Award to carrier and insured to trigger payment or enforcement of award
Help Hints
Coverage disputes generally cannot be resolved through appraisal
If parties can’t agree on an umpire, court will appoint
Rules vary state by state on appraiser qualifications,
selection, hearing process and costs
Appraisal findings are generally called an “award”
Unconfirmed= Force/effect of a contract
Confirmed by a court =Enforceable judgment