An Appraisal Of The Appraisal Remedy In Property Insurance

While the appraisal remedy can be an efficient and effective way to settle valuation disputes arising from a loss under a property policy, the decision whether to invoke or to resist it involves many legal and strategic nuances. When coverage issues are being disputed, insurers often demand an appraisal to avoid a court or jury ruling on the policyholder’s damages, while also attempting to exclude or limit coverage. This can result in a longer and more expensive claim resolution process than litigation. Policyholders should therefore give careful consideration to the appraisal remedy and its consequences.