If an insured invokes the appraisal clause and hires an independent appraiser; does the insured need to share their independent appraisal to the company? I have looked at many google searches on this and cannot find an answer for it.
Vermont Subscriber
The appraisal clause in the ISO PP 00 01 states as follows: "The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire."
The insured's appraisal at least has to be shared with the appraiser the company selects. Otherwise, having an appraisal is useless. No one is going to take an insured's word for it that he has an appraisal that establishes the value of the loss at a given amount without seeing the appraisal itself. If the appraisers agree on the insured's appraisal, then that document would become part of the company's files for its records. But the appraisal has to at least be shared with the other appraiser, and eventually it will go to the company. Why does the insured not want to share the appraisal?
Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.