Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a licensed attorney.
Detailed Answer
When an insurer issues a low diminished value offer after a covered loss, you can invoke the appraisal clause in your Mississippi insurance policy to obtain an independent, binding determination of the loss’s actual value. An appraisal clause is a contractual mechanism — not a court action — that resolves disputes over the amount of loss. In Mississippi, courts respect appraisal clauses as enforceable under contract law.
1. Review Your Policy’s Appraisal Clause
Locate the appraisal section in your insurance policy. It usually appears under “Loss Settlement” or “Conditions.” Note the time limits for demanding appraisal and any requirements for notices and appraiser qualifications.
2. Send a Written Demand for Appraisal
Within the policy’s specified timeframe (often 60 days after proof of loss), send a certified-mail demand letter to your insurer. Include your claim number, a statement that you dispute the insurer’s valuation, and your intent to invoke appraisal.
3. Appraiser Selection
After your demand, you and the insurer each select a competent, independent appraiser. Mississippi courts will enforce deadlines for naming appraisers if the policy requires prompt selection.
4. Agree on an Umpire
If the two appraisers cannot agree on the amount of loss, they choose a neutral umpire. If they cannot agree on an umpire within a reasonable time, either party may ask a Mississippi circuit court to appoint one.
5. Conduct the Appraisal
The appraisers (and umpire, if needed) inspect the damaged property, review repair estimates, depreciation schedules, and other documentation. They then submit a written, signed appraisal award stating the amount of loss.
6. Binding Award and Payment
Under most policies, the appraisal award is binding on both parties as to the amount of the loss. After you provide the award to the insurer, the insurer must pay any amount over its prior low offer, subject to your policy’s deductible and coverage limits.
Mississippi Law References
Mississippi’s Unfair Claim Settlement Practices Act prohibits insurers from undervaluing claims in bad faith. See Miss. Code Ann. § 83-9-1 (prohibiting unfair practices such as misrepresenting facts or policy provisions). You can review the text at https://www.legislature.ms.gov.
Helpful Hints
- Keep certified-mail receipts and detailed records of every communication.
- Document all repair estimates with photos and dated invoices.
- Meet every deadline set by your policy to avoid waiver of appraisal rights.
- Consider consulting a public adjuster or attorney before and during appraisal to strengthen your position.
- If the insurer ignores the appraisal award, you may file a petition in a Mississippi circuit court to enforce it.