What Is An Insurance Appraisal?

November 7, 2018


An insurance appraisal is a provision found in the Loss Settlement section of an insurance policy. It is a binding contractual process available to help resolve disagreements between an Insurance Carrier and an Insurance Policyholder. An insurance appraisal does not address coverage issues within an insurance policy but may determine what items would or would not be included in being covered during an insurance claim.


Appraisals are most commonly used during property damage situations. Most insurance policies state that an appraisal is necessary when filing a claim for any damages that have occurred. The appraisal process is designed to allow for a fair way to access the scope of any damages along with the estimated cost that would be associated with any repairs.


When a Policyholder and Carrier find themselves at odds as to what they believe should be covered in a claim, a lawsuit could follow. While there may be times where seeking legal avenues makes sense, usually the appraisal process serves as an alternative to lawsuits. Here is a list of Pros & Cons between an Appraisal vs a Lawsuit:


Pros & Cons

Appraisal vs Lawsuit


Appraisal                                           Lawsuit

Quick – Expedient                           Slower – Protracted

Relatively less costly                      Generally more costly

May be less adversarial                 More adversarial

No appellate potential                  Appeal is possible

Must pay fees/costs                        May recover fees/costs

No firm procedure                           Strict procedures


*Insurance Appraisal and Umpire Association, Inc.


A skilled appraiser will prove to be beneficial to the carrier in helping them to save money while still processing the claim promptly and efficiently which will help the Policyholder as well.  Eastern Public Adjusters team of professionals understand that the process of having to file a claim due to property damage can be an overwhelming experience. We also understand that the loss or damage to property can be devastating. That is why we are here to help walk you through the process every step of the way. 


Eastern Public Adjusters is a disaster recovery consultancy and expert in property insurance claims management. With over 20 years of experience, we are licensed to service clients all over the Greater New York City area including Pennsylvania, New Jersey, and North Carolina. For 24/7 claims advice and service, call (929) 999.4674 or contact us at www.easternpublicadjusters.com.

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