Understanding Appraisal Clauses: A Guide for Attorneys and Adjusters

In the complex world of insurance claims, appraisal clauses often serve as a critical tool for resolving disputes efficiently.

For attorneys and public adjusters in Florida, understanding these clauses can mean the difference between a swift settlement and prolonged litigation. At All Claims Consulting, with over 40 years of experience, 8,000+ cases, and a track record of serving 600+ clients, we’ve seen firsthand how appraisals can streamline the process.

This guide breaks down what appraisal clauses are, how they work, and how to leverage them effectively.

What Is an Appraisal Clause?

An appraisal clause is a provision in many insurance policies that allows both the insurer and the policyholder to hire independent appraisers to determine the value of a loss when they disagree on the amount.

Typically triggered when negotiations stall, this process involves:

• Each party selecting a competent appraiser.
• The two appraisers appointing a neutral umpire if needed.
• The panel agreeing on a binding valuation.

This mechanism, often outlined in policies under a section like “Appraisal” or “Dispute Resolution,” aims to avoid costly court battles. However, its success depends on proper execution—a point where All Claims Consulting’s expertise shines.

How the Appraisal Process Works

• Initiation: Either party can usually invoke the clause, usually after a written demand. Attorneys should review the policy language to ensure compliance with deadlines or conditions.
• Appraiser Selection: Both sides choose qualified appraisers. Public adjusters play a key role here, recommending experts like All Claims Consulting, known for accurate estimates backed by 40+ years of experience.
• Umpire Involvement: If appraisers disagree, a neutral umpire (someone like our own Tony Allogia, who routinely provides this service) steps in to break the deadlock.
• Binding Decision: The agreed-upon amount is typically binding, though attorneys may need to enforce it legally if challenged.

The process is faster and less expensive than litigation, but it requires precision to avoid pitfalls like undervaluation or procedural errors.

Tips for Attorneys and Adjusters

• Review Policy Language: Ensure the clause is enforceable and note any specific requirements (e.g., time limits).
• Choose Qualified Appraisers: Select consultants with proven track records, like All Claims Consulting, certified in loss valuation and dispute resolution.
• Prepare Thorough Documentation: Provide appraisers with detailed evidence to support your position, enhancing the likelihood of a favorable ruling.
• Collaborate Early: Engage All Claims Consulting at the outset to align strategies and avoid last-minute surprises.

Why All Claims Consulting Matters

With a history of resolving complex claims and a team led by Tony Allogia, All Claims Consulting brings unparalleled insight to the appraisal process. Our approach combines accurate valuations with impartial umpire services, ensuring fair and efficient resolutions.

Whether you’re an attorney building a case or a public adjuster advocating for a client, our 8,000+ cases demonstrate our commitment to excellence.

We’re not here to escalate. We’re here to clarify, support, and resolve.

Next Steps

Understanding appraisal clauses is the first step toward effective dispute resolution.

Contact us or more insights or to discuss how All Claims Consulting can support your next case.

Let’s help your next case move forward—with clarity.