An appraisal clause is a provision found in many insurance policies that provides a method for resolving a disagreement about the amount of a covered loss. It is not the same thing as a dispute about whether the policy covers the loss.
How the process generally works
- Review the policy to determine whether appraisal is available for the dispute.
- A party invokes the appraisal provision according to the policy and applicable law.
- Each side selects an appraiser; the appraisers evaluate the disputed amount.
- If the appraisers cannot agree, the policy or applicable law may provide for an umpire.
Washington-specific considerations
RCW 48.18.620 contains requirements concerning appraisal provisions in automobile insurance policies. Do not assume the exact same procedure applies in Oregon or Idaho. The policy wording and claim facts matter.
What appraisal does not decide
An appraisal is ordinarily aimed at determining value or the amount of loss, not resolving every coverage, liability, or legal issue.
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