Appraisal Clause
Right of Appraisal
Understanding the insurance appraisal clause — how it works, when it may apply, and the role of an independent appraiser in the process.
What Is the Right of Appraisal?
The Right of Appraisal refers to a contractual right — found in some auto insurance policies — to invoke a formal appraisal process when a disagreement arises over the value of a vehicle or the amount of a loss. The right comes from the applicable insurance policy and, in some jurisdictions, may also be affected by state law.
When invoked, the process typically involves each party selecting an independent appraiser. The appraisers review the available evidence and attempt to reach agreement on the disputed amount. If they cannot agree, a neutral umpire may become involved according to the policy language.
Not every auto insurance policy contains an appraisal clause. Whether a right of appraisal exists, what it covers, and how it operates depends on the specific policy and applicable law. Reviewing the actual policy is the essential first step.
What Are You Looking For?
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A1 Auto Appraisals provides independent appraiser services for insurance appraisal clause proceedings — for vehicle owners, carriers, and attorneys.
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Our educational Resource Center covers the appraisal clause, the appraisal process, appraisers, umpires, and appraisal awards — in plain language.
Browse the Resource CenterWhat Appraisal Does and Does Not Determine
The appraisal process is generally limited to valuation and amount-of-loss issues. It is not designed to resolve every type of insurance dispute.
Appraisal Generally Addresses
- The value of the vehicle
- The amount of the loss
- Repair cost disputes (where permitted by policy)
- Other valuation issues within the scope of the provision
Appraisal Does Not Determine
- Coverage under the policy
- Liability for the accident
- Bad faith or claims handling issues
- Policy interpretation questions
- Every type of insurance dispute
Educational Information Only
A1 Auto Appraisals is an independent vehicle appraisal company and is not a law firm. The information provided on this page is for general educational purposes only and should not be considered legal advice. Insurance policies, appraisal provisions, claim circumstances, and applicable laws vary. Questions concerning legal rights, insurance policy interpretation, or applicable law should be directed to a qualified attorney in the applicable jurisdiction.
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