Resolving Claim Disputes
If your auto damage claim is unjustly denied, go to your agent for help. Many
agents have the expertise and skills to be an effective advocate for your
rights, and they often succeed in getting claims paid. If that fails, you can
mediate, arbitrate, file a complaint with your state insurance department,
or even sue your insurance company.
But what if the adjuster agrees that you’re covered but disputes the amount
of your claim? Fortunately, your policy has a simple, inexpensive solution
built into the policy provisions — the appraisal clause.
Virtually every personal policy — auto, home, boat, and so on — contains an
appraisal clause. Few people know about it, and even fewer people use it. In
this section, I explain how to use the appraisal clause if you and your insurance
company don’t agree on how much your claim is worth.
Virtually every personal policy — auto, home, boat, and so on — contains an
appraisal clause. Few people know about it, and even fewer people use it. In
this section, I explain how to use the appraisal clause if you and your insurance
company don’t agree on how much your claim is worth.
Use the appraisal clause only after the best attempts of you and your agent to
settle the claim for a fair amount have failed.
Either you or your insurance company may request an appraisal if you fail
to agree on the dollar value of a covered claim. If you’re requesting one, you
simply send the insurance company a letter with your request.
Each party picks an appraiser to represent his position. The two appraisers
independently choose a disinterested umpire to resolve things if the two
appraisers can’t reach an agreement. Each party pays for his own appraiser
and splits other appraisal expenses (including the umpire’s cost, if needed).
The good news is that you aren’t forced to accept the insurance company’s
offer. Also, the process is considerably cheaper and faster than lawsuits or
arbitration.
For most property valuation disputes, you don’t need an elaborate group of
three solemn judges. You just need a fair, unbiased, and disinterested person
with excellent knowledge regarding the subject of the dispute — someone
both parties are comfortable with — to act as the umpire. Both parties agree
to abide by the umpire’s decision.
If your auto damage claim is unjustly denied, go to your agent for help. Many
agents have the expertise and skills to be an effective advocate for your
rights, and they often succeed in getting claims paid. If that fails, you can
mediate, arbitrate, file a complaint with your state insurance department,
or even sue your insurance company.
But what if the adjuster agrees that you’re covered but disputes the amount
of your claim? Fortunately, your policy has a simple, inexpensive solution
built into the policy provisions — the appraisal clause.
Virtually every personal policy — auto, home, boat, and so on — contains an
appraisal clause. Few people know about it, and even fewer people use it. In
this section, I explain how to use the appraisal clause if you and your insurance
company don’t agree on how much your claim is worth.
Virtually every personal policy — auto, home, boat, and so on — contains an
appraisal clause. Few people know about it, and even fewer people use it. In
this section, I explain how to use the appraisal clause if you and your insurance
company don’t agree on how much your claim is worth.
Use the appraisal clause only after the best attempts of you and your agent to
settle the claim for a fair amount have failed.
Either you or your insurance company may request an appraisal if you fail
to agree on the dollar value of a covered claim. If you’re requesting one, you
simply send the insurance company a letter with your request.
Each party picks an appraiser to represent his position. The two appraisers
independently choose a disinterested umpire to resolve things if the two
appraisers can’t reach an agreement. Each party pays for his own appraiser
and splits other appraisal expenses (including the umpire’s cost, if needed).
The good news is that you aren’t forced to accept the insurance company’s
offer. Also, the process is considerably cheaper and faster than lawsuits or
arbitration.
For most property valuation disputes, you don’t need an elaborate group of
three solemn judges. You just need a fair, unbiased, and disinterested person
with excellent knowledge regarding the subject of the dispute — someone
both parties are comfortable with — to act as the umpire. Both parties agree
to abide by the umpire’s decision.
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