Most people never read the conditions section of their property policy until something goes wrong. Buried there, usually after “Loss Payment” and before “Suit Against Us,” is a short paragraph called Appraisal. If you live in Washington and your claim is stuck on a number, it may be the most useful paragraph in the policy.
What a typical clause says
Wording varies, but most clauses follow the same pattern:
- If you and the insurer fail to agree on the amount of loss, either may demand appraisal in writing.
- Each party selects a competent and independent appraiser within a set time, often 20 days.
- The two appraisers select an umpire. If they can’t agree, either may ask a court of record where the property is located to choose one.
- The appraisers set the amount of loss. If they don’t agree, they submit their differences to the umpire.
- A decision agreed to by any two will set the amount of loss.
- Each party pays its own appraiser and shares the umpire’s costs equally.
Amount of loss, not coverage
The key phrase is “amount of loss.” Appraisal answers how much covered damage costs. It doesn’t decide whether damage is covered at all, whether an exclusion applies, or whether the insurer handled the claim properly. Those questions belong to the insurer, the Office of the Insurance Commissioner or a court.
In practice, the line can blur. Is a cracked shingle storm damage or old wear? Is wet drywall from the windstorm or a long-term leak? Panels often have to decide what damage was caused by the event in order to value it. Well-written awards make clear what the panel decided.
When it makes sense in Washington
Appraisal works best when coverage is accepted and the gap is meaningful. Typical examples include a windstorm roof claim where the insurer approved two slopes and your roofer says the whole roof, a fir through the garage where structural framing was left out, or a smoke claim where only a few rooms were scheduled for cleaning.
When it doesn’t
If the insurer denied the claim, delayed it without reason or you believe it acted in bad faith, appraisal won’t solve that. Washington’s Insurance Fair Conduct Act and the state’s claims-handling rules may give you other options. Those are legal questions, so speak with a Washington attorney.
Keep reading
GuideAppraisal, an OIC Complaint or an IFCA Claim: Which Path Fits?
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A practical checklist for the first days after a Pacific windstorm or a tree through the roof.Read
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