Sample Policy Language and Eligibility:The Appraisal Clause listed is an example that might vary by policy. (Remember that the Appraisal Clause only pertains to one’s own insurance).
A person in dispute because their vehicle was damaged by another insurer is considered a third party and not eligible for this option.
Appraisal Clause :
Standard Policy Language Applies Commonly Known as the APPRAISAL
CLAUSE): under the under the provisions of one's own insurance policy, where the value of an insured person's vehicle is not agreed upon in the settlement process. The vehicle owner secures the services of an independent appraiser to represent his/her interest in the fair market value of the vehicle. The insurance carrier also retains an independent appraiser to represent their position and interest in the matter. Furthermore, the policy clause stipulates that an award shall be made binding, by the agreement of any two (2) appraisers or (1) appraiser and the umpire participating the appraisal clause hearing procedures.
The Award is also made without consideration for a deductible, sales tax, license or license transfer fee or any other provision of the above policy/policies which affect the amount of the insurer's liability there under.
The cost of the process is shared equally by the parties to the case. The parties to the case bare a burden of payment for their prospective appraisers, and 50% of the fee charged by the Auto Insurance Claims Mediators website services and the Umpire/Judge selected to hear the case. It is also agreed that none of the applicable Umpire fees for this hearing will be deducted from the insurer's settlement.
Q. Who can use the mediation/arbitration service?
A. Services are available to the general public, appraisers, auto insurance companies and others when vehicle value or damage related disputes arise and their insurance company policy allows.
Q. Who can invoke an Appraisal Clause?
A. Individuals and insurers have the right to invoke the appraisal clause in most states, but verify this with your state and your auto insurance policy “Appraisal Clause.”
Q. When should the Appraisal Clause be invoked?
A. Providing a reasonable period of time after presenting the appraisal or estimate that is in dispute. A reasonable period of time is your own decision.
Q. Is the auto mediation/arbitration process fair?
A. The Auto Insurance Claims Mediators mediation/arbitration process uses the only Umpires who vow to remain unbiased.
Q. Why does the selection process provide a third Umpire that is identified by an ID # only?
A. The Auto Insurance Claims Mediator Website developed a computer driven program that generates an ID # only for the third umpire selection that insures both the Insured and the Insurance company's appraisers will get an umpire who remains anonymous until the Appraisal Clause Hearing process starts.
Q. Is the Auto Insurance Claims Mediator Website process reasonably priced?
A. The cost to use this process is much less than the alternatives, such as litigation.
Q. Is the process timely?
A. The time to process varies, but takes less time than it would in a judicial setting.
Q. Do Auto Mediators Associate appraisers follow guidelines?
A. Auto Mediators associates are required to adhere to ethics along with Terms and Conditions as prescribed by the Auto Mediators Association and the rules of procedures and practices as prescribed by the law.
Q. Who pays for the process?
A The administrative and umpire fee is split by the sides.
Q. How do I get started?
A. Have your appraiser read the Terms and Conditions, and then proceed to getting started.