Unlocking the Secrets of Insurance Appraisals: What You Need to Know

Disputes with your insurance company over claim amounts can be frustrating and time-consuming. But did you know that there’s a potentially faster, cheaper, and more efficient alternative to lengthy litigation? It’s called appraisal, and it could be the key to resolving your claim dispute fairly.

A recent report by the Texas Department of Insurance (TDI) sheds light on the intriguing world of insurance appraisals, revealing valuable insights into how they work and their potential benefits. At PALCO Claims, we specialize in insurance appraisals and have witnessed firsthand the effectiveness of this process. We’ve found the TDI’s findings to be remarkably consistent with our own experiences in the field.

Here’s what you need to know about insurance appraisals:

• Appraisals are a valuable tool for resolving disputes over the amount of loss for a covered property insurance claim.
• The appraisal process is relatively straightforward: If you and your insurance company can’t agree on the amount of loss, either party can demand an appraisal. Each side hires a neutral appraiser to assess the damage, and they work together to reach an agreement. If they can’t agree, they choose a third appraiser, called an umpire, to help settle the dispute. The final appraisal award is generally binding. It is important to note that appraisal does not determine coverage or any other terms and conditions of the insurance contract
• Appraisals are surprisingly uncommon: The TDI report revealed that appraisal was used in less than 2% of all payable residential property claims in Texas.
• Policyholders are often unaware of appraisal as an option: At PALCO Claims, our experience suggests that the low utilization of appraisals is likely due to a lack of awareness among policyholders. Many people simply don’t know that this option exists or understand how it works.
• Appraisals frequently result in higher payouts for policyholders: The TDI report found that 97% of residential property appraisal awards were higher than the insurer’s initial offer, with the average award being about $22,600 more.

The TDI report reinforces what we at PALCO Claims have observed that appraisals can be a game-changer for policyholders seeking a fair resolution to their claim disputes. While only 2% of claims currently go to appraisal, those that do have a 97% chance of resulting in a higher payout than the insurance company’s initial offer.

If you’re facing a disagreement with your insurance company over the value of your claim, don’t settle for less than you deserve. Contact PALCO Claims today to learn more about how appraisal can help you obtain a fair and just settlement. Visit us at www.palcoclaims.com to unlock the full potential of your claim.