A dispute arises over the value and/or extent of an insured loss between the insurance carrier and insured.
Either party, in writing, demands appraisal based on the policy language. Each party will assign a competent and impartial appraiser to value the loss.
The two appraisers will select an umpire to be the 3rd party on the appraisal panel. The two appraisers will each inspect, document and value the loss in an attempt to reach an agreement on their positions. If the two appraisers come to an agreement, they will set the amount of loss and execute the appraisal award.
If the two appraisers are unable to agree, the umpire will be invoked to rule on the differences of the two appraisers.
Once the differences of the two appraisers have been resolved in the eyes of the umpire, 2 of the 3 members on the appraisal panel will sign and execute the appraisal award OR 3 out of 3 members will unanimously agree on the award.
The appraisal award is then delivered to the carrier with a minimum of 2 signatures to apply coverage and submit payments concluding the appraisal process.