QuestionQUESTION: I live in Arizona and my truck was damaged during a hail storm in October of 2010. I contacted my insurance company and opened a claim for the damage to my vehicle. The adjuster looked at the vehicle and estimated approximately $2000 in damage. Before I filed my claim I went to a couple shops who quoted me $4000-$5000 in damages. My truck is worth maybe $8000.
Is there any way to appeal the estimate from the adjuster? I called my agent who told me to take it to a preferred shop so they can fix it and be done with it. Honestly, I'd like to take the money being offered but I feel like I'm not getting a fair shake at the damages done to my vehicle.
ANSWER: You can invoke the appraisal clause of your policy and force your insurance company to get an independent appraiser. You will also need to get an independent. The two appraisers will attempt to agree on the damage cost and if they cannot, then an umpire / judge will be picked and the judge will make the final decision on the amount to be paid. It is not quite that simple, but pretty much. In almost every State there is an appraisal clause for first party collision / comp claims, but to be sure we would need to refer to your policy.
Other than filing a suit, the appraisal clause is your best bet. There's not really any way for you to make them change their mind, that's why there is an appraisal clause. Most people never know they have the appraisal option, I'm not saying that no insurance companies do, but insurance companies where I have worked didn't train adjusters in the appraisal clause process, in fact, none of the companies I worked at ever even mentioned the appraisal clause, but it was in the policy. It is up to you to locate the language in the policy and invoke the rights your policy affords you.
Google us and call us directly if you like, and we'll discuss your claim with you at no charge. Information is always free at Petty Details, LLC! I hope this helps.
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QUESTION: Settlement of Loss - Comprehensive and Collision Coverages
"1. We have the right to settle a loss with you or the owner of the property at the time of the loss in exchange for the damaged property. If the owner and we cannot agree on the actual cash value, either party may demand an appraisal as described below. If the owner keeps the damaged property, we will deduct its value after the loss from our payment. The damaged property cannot be abandoned to us;
2. pay to:
a. repair the damaged property or part, or
b. replace the property or part
if the repair or replacement results in betterment, you must pay for the amount of betterment; or
3. return the stolen property and pay for any damage due to the theft.
Appraisal under item 1 above shall be conducted according to the following procedure. Each party shall select an appraiser. These two shall select a third appraiser. If unable to agree on the third one within 30 days either party may request a judge of a court of record in the county in which the appraisal is pending to select a third one. The written decision of any two appraisers shall be binding. The cost of the appraiser shall be paid by the party who hired him or here. The cost of the third appraiser and other appraisal expenses shall be shared equally by both parties. We do not waive any of our rights by agreeing to an appraisal."
My vehicle wasn't a total loss, but I see how this might work. What's the average cost to hire an appraiser and the what is the approximate cost of the third appraiser (since I share that cost with the insurance company).
Is an appraiser in this case the same as an adjuster, so I will need to seek a public adjuster?
I find it to be strange that the insurance company didn't have any interest in seeing the quotes I obtained prior to filing the claim. I guess its their business to pay as little as possible.
I appreciate your help Justin. Thank you very much!
Answer1. Average cost of a appraiser = $250.00
2. Appraiser and adjuster are not the same thing, no need for a public adjuster.
3. Average cost of "umpire / third appraiser" (not necessarily needed) = $500.00.
If your appraiser and their appraiser can agree on the damages, then there is no need for a third. I have never had a case need an umpire, I was always able to reach an agreement with the company's independent appraiser.
A public adjuster will actually handle your case for you and do all of the negotiating. The public adjuster would likely hire an appraiser if the insurance company damage estimation was suspect. The appraiser will just provide a report as to the damages and will discuss the damages with the other appraiser in an attempt to agree on a cost.
