FastCounsel

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your situation.

Detailed Answer

In Nebraska, an appraisal clause in a property or casualty insurance policy lets you challenge a low diminished value offer without going to court. The appraisal process is a contract-based procedure, often treated similarly to arbitration under the Uniform Arbitration Act (Neb. Rev. Stat. A725A02601A0et seq.; link).

1. Locate the Appraisal Clause

Open your insurance policy and find the section usually titled “Appraisal” or “Loss Appraisal.” This clause outlines your rights and the insurer’s obligations. It will specify:

• Time limits for demanding appraisal (often 20–30 days after a dispute).
• How you and the insurer each select an appraiser.
• How appraisers choose an umpire if they disagree.
• Who bears the costs of the appraisal.

2. Send a Written Demand

Once you receive a low diminished value offer, send a written demand for appraisal to your insurer. Include:

• Policy number and claim number.
• Statement that you invoke the appraisal clause to determine diminished value.
• Your contact information and appraisal deadline per the policy.

Send this demand via certified mail with return receipt. This creates evidence you met any policy deadlines.

3. Select Your Appraiser

After your demand, you typically have 10–20 days to appoint a competent appraiser. Choose a professional with experience in vehicle diminished value assessments. Notify the insurer in writing of your appraiser’s name, qualifications, and contact details.

4. Insurer Appoints Its Appraiser

The insurer must then appoint its own appraiser within the policy’s time frame. If the insurer refuses or misses the deadline, review your policy and consider a letter reminding them of their contractual duty.

5. Appraiser Conference and Umpire Selection

Your appraiser and the insurer’s appraiser inspect the vehicle and exchange reports. If they cannot agree on the diminished value, they select an impartial umpire within the policy’s deadline. If they fail to agree on an umpire, most policies allow either party to ask a court to appoint one. Courts in Nebraska enforce these contractual procedures under Neb. Rev. Stat. A725A02601A0et seq.

6. Binding Appraisal Award

Once the two appraisers and the umpire agree on a value—or the umpire breaks a deadlock—the award becomes binding. The insurer must pay the amount awarded for diminished value regardless of its prior low offer.

Remember: appraisal is distinct from litigation. You waive your right to sue over the disputed amount when you invoke appraisal, but you preserve your right to sue on other coverage issues.

Helpful Hints

• Read your policy’s deadlines carefully; late demands may void appraisal rights.
• Use certified mail or documented delivery when sending notices.
• Select an appraiser familiar with Nebraska’s diminished value standards.
• Keep copies of all correspondence, appraisal reports, and receipts.
• If the insurer stalls on appointing an appraiser, follow up in writing and note dates.
• Consider a local attorney if the insurer ignores the appraisal clause or misses deadlines.