Insurance Claim Appraisal

What is an insurance claim appraisal?

An insurance claim appraisal is an alternative dispute resolution process invoked when an insurer and insured disagree on the amount of loss, such as actual cash value or replacement cost, under a property insurance policy. Each party appoints an appraiser, and if they cannot agree, an umpire is selected whose decision, combined with either appraiser's agreement, binds both parties on the loss amount. This process does not resolve coverage disputes, causation disagreements, or policy interpretation questions.

When is an insurance claim appraisal required?

An insurance claim appraisal is required when either party demands it in writing after a dispute arises over the amount of loss, provided the policy includes an appraisal clause. The right to invoke appraisal depends on policy terms and state law, in some states, failing to demand appraisal within a reasonable time can waive that right. It is a contractual remedy, not a federal or regulatory mandate.

What types of assets need an insurance claim appraisal?

AppraiseItNow handles insurance claim appraisals for:

• Personal property: jewelry, antiques, furniture, coins, collectibles, and household goods
• Equipment and machinery: medical equipment, restaurant equipment, manufacturing machinery, and technology assets
• Artwork: paintings, prints, sculpture, photography, and mixed media
• Business interests: LLCs, S-corps, partnerships, fractional interests, and privately held stock
• Boats: sailboats, powerboats, yachts, jet skis, and personal watercraft
• Automobiles: cars, trucks, motorcycles, RVs, trailers, and classic vehicles

Who qualifies as an appraiser for insurance claim purposes?

Most policies require each party to appoint a "competent and impartial" appraiser, meaning someone with relevant expertise in the asset type being valued and no financial interest in the outcome. AppraiseItNow appraisers hold credentials from leading organizations such as the ISA (International Society of Appraisers) and ASA (American Society of Appraisers), and all appraisals adhere to USPAP standards. State courts enforce these requirements to prevent bias or invalidation of the appraisal award.

Are AppraiseItNow's insurance claim appraisals USPAP-compliant?

Yes, all AppraiseItNow appraisals are prepared in accordance with USPAP (Uniform Standards of Professional Appraisal Practice), making them professionally defensible for insurance purposes. USPAP compliance ensures the report meets the standards expected by insurers, courts, and government agencies. Whether USPAP is explicitly required by your policy depends on state law and policy language, but compliance strengthens the credibility and defensibility of the appraisal.

What information do you need to get started?

You can submit your request entirely online, no office visit required. Helpful information to have ready includes:

• A description of the asset and its condition
• Photos or documentation of the item
• Any prior appraisals, purchase receipts, or insurance schedules
• Details about the loss or damage being disputed

AppraiseItNow provides an upfront quote before any work begins so you know the cost and scope in advance.

How long does an insurance claim appraisal take?

Turnaround times vary by asset type:

• Personal property and equipment and machinery: 7 to 10 days for remote appraisals; 2 to 3 weeks for onsite inspections or larger collections; rush same-day or next-day service available
• Artwork: 5 to 7 days for simple projects; 2 to 3 weeks for advanced assignments or large collections
• Automobiles: 3 to 5 days depending on complexity
• Boats: 3 to 5 days for standard appraisals; marine surveys, when required, typically take 3 to 5 weeks to schedule and complete
• Business interests: 2 to 4 weeks for most engagements; rush 7 to 10 day turnaround available upon request

How much does an insurance claim appraisal cost?

Fees vary depending on asset type, scope, and complexity, visit our pricing page for a full breakdown. AppraiseItNow provides an upfront quote before proceeding so there are no surprises.

Can you appraise assets located anywhere in the US?

Yes, AppraiseItNow provides appraisals nationwide. Most asset types can be appraised remotely through our secure online platform, and onsite inspections can be arranged where needed.

Will my appraisal be accepted by my insurer or a court?

AppraiseItNow appraisals are prepared to meet qualified appraisal standards, including a stated valuation date, documented methodology, credentialed appraisers, and a non-contingent fee declaration. These elements are what insurers, courts, and arbitrators look for when evaluating an appraisal's credibility. No firm can guarantee acceptance in every case, but following these standards significantly reduces the risk of challenge or rejection.

Do you buy, sell, or broker assets?

No. AppraiseItNow provides independent appraisals only and has no financial interest in the assets we appraise. This independence is essential to producing credible, unbiased valuations that hold up to scrutiny from insurers and courts.

What happens if my insurance company and I cannot agree on an umpire?

If the two appraisers cannot agree on an umpire within the timeframe specified in your policy, the process may stall and appraisal rights could be waived depending on state law. State courts generally enforce strict compliance with policy timelines. Consult your policy language and a qualified insurance attorney to understand your options if umpire selection fails.

Does appraisal apply if my insurer denies coverage entirely?

No, appraisal applies only to disputes about the dollar amount of a covered loss, not to coverage denials. If your insurer denies coverage altogether, you must pursue court resolution to challenge that decision. Appraisal is a remedy exclusively for quantifying loss when both parties agree the claim is covered but disagree on its value.

What if I believe the insurer is invoking appraisal in bad faith to delay my settlement?

Insurers cannot invoke appraisal oppressively or in bad faith, and such conduct may be challengeable under state insurance law. If you suspect bad faith, document the circumstances carefully and consult a qualified insurance attorney. Your attorney can advise whether to proceed with appraisal, seek court intervention, or pursue a bad faith claim against the insurer.

Does an appraisal award guarantee the insurer will pay?

The appraisal award binds both parties on the loss amount, but the insurer can still refuse payment if coverage is denied or other policy conditions are not satisfied. For example, if appraisers agree the loss is $50,000, the insurer must accept that valuation, but if a coverage exclusion applies, payment may still be withheld. Appraisal resolves the quantum of loss, not coverage disputes.

How do I know my appraiser meets the "competent and impartial" standard in my policy?

Your appraiser should have relevant expertise in the specific asset type being valued and must be independent from you to satisfy the impartiality requirement. Credentials such as ISA or ASA membership and USPAP compliance demonstrate professional competence and are widely recognized by insurers and courts. Review your policy language and consult your insurance company or attorney to confirm your selection meets the standard under your state's law.

Can I withdraw from appraisal if I reach a settlement before the process is complete?

A mutual settlement agreement with your insurer would generally supersede the appraisal process, since either party can waive appraisal rights. You should document the settlement in writing and notify both appraisers and the insurer of the withdrawal. Consult your policy language and a qualified insurance attorney to ensure the appraisal is properly terminated and the settlement is binding.