The appraisal process is part of the standard residential insurance policy. Its purpose is to help resolve potential conflict between the insured and the insurer in the event that the insured does not feel that the insurer has properly indemnified them for their loss on a filed claim. The insured can invoke the appraisal clause in their policy in lieu of hiring a lawyer to litigate their grievance. The appraisal process is designed to resolve differences without litigation. The Appraisal Panel is comprised of three people: • An independent Appraiser chosen by and contracted by the Insured • An independent Appraiser chosen by and contracted by the Insurance Company • An independent Umpire that is jointly agreed upon by the two opposing Appraisers The typical appraisal clause states: If you and we fail to agree on the amount of loss, each party will choose a competent appraiser within 20 days after receiving a written request clause from the other. The two appraisers will choose an umpire. If they cannot agree on an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where is “residence premises” is located. The appraisers will separately set the amount of loss. If the two appraisers written reports are in agreement, the amount agreed upon will be the amount of the loss. If they fail to agree, they will submit their positions to the umpire and the umpires will made a determination. A decision agreed to by two of the three on the panel will set the amount of loss. Both the Carrier and the Insured will: • pay its own appraiser • bear the other expenses of the appraisal • pay the cost of the umpire equally if the umpire is invoked If the two Appraisers cannot reach an agreement on the amount of compensation for the damage they will invoke the Umpire. The Umpire will complete the Appraisal Panel. At this point, all communications must include all three of the panel members. The Umpire will require information and documentation from both Appraisers to aid the Umpire with his/her determination of a possible resolution for the dispute. The Umpire is tasked with the compromise between the two Appraisers or the Umpire may agree with one of the Appraisers. When or if two of the three on the panel agree, that amount is final and binding on the insured and the carrier. If an agreement cannot be reached the panel may be disbanded and the claim will have to be resolved in court.