5 Common Myths About the Insurance Appraisal Process
The insurance appraisal process can be a powerful tool for resolving claim disputes, but there’s a lot of misinformation out there. Many policyholders don’t fully understand their rights—or even know that appraisal is an option.
Let’s debunk five of the biggest myths about insurance appraisal.
Myth #1: Appraisal Can Decide Coverage Issues
🚫 False! Appraisal only determines the value of the loss, not whether a claim is covered. If your insurer is denying your claim outright, appraisal won’t help—you’ll need legal assistance.
Myth #2: The Insurance Company Has the Final Say on Costs
🚫 False! Many policyholders assume the insurer’s estimate is the only number that matters. In reality, you have the right to challenge their valuation through independent appraisal.
Myth #3: Appraisal Is the Same as Arbitration
🚫 False! Arbitration is a legal dispute resolution method, while appraisal is a process written into your insurance policy that focuses strictly on the cost of damage.
Myth #4: The Umpire Will Always Side with the Insurance Company
🚫 False! A neutral umpire is chosen jointly by both appraisers, and their job is to fairly evaluate the dispute. If your claim is well-documented, there’s no reason to assume an unfair outcome.
Myth #5: Appraisal Is Too Expensive to Be Worth It
🚫 False! While there are costs involved, appraisal is usually far cheaper than hiring an attorney or going to court. For disputes over significant sums, it can be the smartest financial decision.
Final Thoughts
Understanding what appraisal can and can’t do is the first step in making informed decisions about your claim. If you’re dealing with a disputed loss, appraisal could be the key to getting a fair settlement.
💡 Have questions about the appraisal process? Contact us today to learn more.