Under what circumstances may an appraisal be requested in an insurance claim?

An appraisal can be requested when there is a disagreement between the insured and the insurer regarding the valuation of a property loss. This typically occurs when one party believes that the amount of damage assessed or the value of the loss is too high or too low, and both parties are unable to come to a mutual agreement. The appraisal process provides a mechanism for resolving these disputes.

During this process, each party selects their own appraiser, and the two appraisers work together to agree on a neutral third appraiser if they cannot settle on a value. This method ensures that both sides have representation and can present their assessments in a structured manner.

In contrast, requesting an appraisal automatically after every claim would be impractical and unnecessary, as many claims can be settled without dispute. Similarly, appraisals are not relevant before filing claims or only limited to policy renewals; these situations do not typically involve a debate over valuation yet. Therefore, the circumstances under which an appraisal may be requested focus specifically on disagreements about property loss valuations.