Detailed Answer
Under Washington law, an insurance appraisal clause is a contractual right you can invoke when you disagree with your insurer’s valuation of your loss. It applies to the amount of loss—not liability or coverage issues. Follow these steps to challenge a low diminished value offer:
- Review your policy’s appraisal clause. Locate the “Conditions” or “Appraisal” section in your auto or property policy. It will describe timing, notice requirements, and selection of appraisers.
- Send a written demand. Draft a letter referencing the appraisal clause. Include policy number, claim number, date of loss, and a statement that you invoke appraisal to determine the amount of loss. Send it via certified mail.
- Select your appraiser. The clause typically gives you a set period (e.g., 30 days) to name a qualified appraiser. Choose someone experienced in diminished value appraisals.
- Request the insurer’s appraiser. Ask the insurer to appoint its own appraiser within the deadline set by your policy. If the insurer fails, many clauses allow you to apply to a court to appoint an umpire.
- Appraisers exchange valuations. Your appraiser and the insurer’s appraiser each prepare a written estimate of the diminished value. If they agree, that amount is binding.
- Umpire selection. If your appraiser and the insurer’s appraiser cannot agree on a value, they jointly select a neutral umpire. If they cannot agree on the umpire, ask a court to appoint one.
- Obtain and submit the appraisal award. The umpire reviews both estimates and issues a binding award on the dollar amount of loss. Submit the award to your insurer. Under your policy, the insurer must pay the approved amount promptly.
- Enforce the award if necessary. If the insurer refuses to pay the appraisal award, you may file a lawsuit for breach of contract and seek enforcement of the appraisal award in superior court.
Under Washington’s unfair claim settlement practices rules, insurers must act in good faith and promptly settle claims under WAC 284-30-330 and cannot unduly delay the appraisal process. If your insurer unreasonably denies appraisal, consider filing a complaint with the Office of the Insurance Commissioner (OIC Complaint Center).
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney before taking legal action.
Helpful Hints
- Read your policy carefully to note deadlines for appraisal demands.
- Choose a licensed appraiser experienced in diminished value analysis.
- Keep detailed records of all correspondence and appraisals.
- If the insurer misses deadlines, document the failure and move to court appointment of an umpire.
- Contact the Washington Office of the Insurance Commissioner if you suspect bad faith.