An appraisal clause is a contractual process that can be used to settle disputes between insurers and their policyholders when the parties fail to agree on the amount that will be covered by the policy. This process is usually done in writing and can be formal or informal.

If your insurer refuses to negotiate a fair settlement on the amount of your vehicle’s loss, you have the option to resolve the issue by going through an insurance policy’s appraisal clause. This process helps determine the value of your property.

This process is often referred to as an appraisal clause in an automotive insurance policy. It explains how to invoke it in an insurance policy.

If you or your insurance company does not agree on the amount of the loss, either you or your insurance company may demand an appraisal. In this scenario, the parties will choose an independent  auto appraiser. In many cases, their auto appraiser will be higher than the last offer the insurance company made to you. 

The appraisers will determine the amount of loss between them. If they fail to agree upon the amount, they will submit their differences with an umpire. 

The key to a successful appraisal clause dispute is finding an expert who has the necessary vehicle knowledge and negotiation skills to handle the various aspects of the process. This includes choosing an umpire and negotiating with the other parties involved. Our Oregon Licensed Auto Appraiser, Ken Nix, has been negotiating Oregon Total Loss disputes for over 11 years in Oregon. He’s local and only works for consumers, and isn’t indebted to the insurance companies like many appraiser who rely on them for income.