The Insurance Appraisal Process: Strategies for Resolving First-Party Claims Effectively and Decisively

This CLE course will guide counsel through the facially simple appraisal option for settling disputes between the policyholder and insurer over the value of a loss. Each party hires an appraiser to value the loss, and the appraisers pick an "umpire" to decide the issue if the appraisers disagree.

Counsel must not fall into the trap of thinking that the appraisal is always as simple and inexpensive as it seems. An appraisal is beneficial when approached carefully and thoughtfully with a full understanding of potential legal issues that should be addressed.

What is to be appraised is often hotly contested. The value of the loss depends on what is covered by the policy, and coverage may turn on causation. The parties may dispute whether an appraiser may determine causation or what the terms of the policy mean. Selecting a competent and qualified umpire is essential, but those standards are not defined in the policy. Policyholders may have to sue the insurer to get paid, and payment of the appraised amount does not always extinguish claims for bad faith or extracontractual liability.

In complex cases, counsel must anticipate and adequately describe how to resolve issues, such as coverage, sub-limits, division of insurable interest, etc. Counsel must know when separate appraisals are necessary and what types of experts may be required for a given loss.

Listen as this experienced panel provides insight and strategies for making appraisal productive and efficient and avoiding confusion, unnecessary disputes, and post-appraisal litigation.