Disclaimer: This article is for informational purposes and is not legal advice.
Detailed Answer
After a collision, your vehicle may suffer “diminished value” even if repairs restore its condition. An insurance appraisal clause lets you challenge the insurer’s low offer by obtaining an independent valuation binding on both sides. Follow these steps under West Virginia insurance law and your policy terms.
1. Review Your Policy’s Appraisal Clause
Locate the appraisal clause in your personal auto policy. It outlines how to request appraisal, deadlines, and the process for selecting appraisers and an umpire. Although West Virginia law does not prescribe specific appraisal rules, your contract governs the procedure. For general insurance regulation, see Title 33 of the West Virginia Code: WV Code Title 33.
2. Send a Written Appraisal Demand
Send a formal written demand to your insurer stating that you invoke the appraisal clause to determine the diminished value. Include:
- Policy number
- Description of loss and repair estimate
- Statement requesting appraisal to fix vehicle market value
- Contact information for your chosen appraiser
Keep proof of delivery, such as certified mail return receipt.
3. Appraiser Selection and Umpire Appointment
Within the timeframe set by your policy (often 20–30 days), both you and the insurer must appoint a qualified appraiser. If the two appraisers cannot agree on an umpire, follow the policy’s method—often a court or arbitration administrator will appoint one.
4. Conduct the Appraisal
Each appraiser inspects the vehicle, compiles a written appraisal of its actual cash value before and after the loss, and submits figures to the umpire. The umpire reviews both appraisals and issues a binding decision on diminished value.
5. Enforce the Appraisal Award
After the umpire’s decision, provide a copy to the insurer. They must pay the award under your policy’s terms. If they refuse or delay payment, you can file a petition in the Circuit Court of your county to enforce the appraisal clause and award. You may also cite West Virginia’s Unfair Insurance Practices Act, WV Code § 33-11-4, arguing that failure to honor a binding award constitutes an unfair claim practice.
Helpful Hints
- Act promptly: Track deadlines in your policy to avoid forfeiture.
- Document everything: Keep all letters, estimates, and policy excerpts.
- Select experienced appraisers: Choose licensed appraisers familiar with diminished value claims.
- Share umpire costs: Typically, each party pays its appraiser and splits the umpire fee.
- Know the clause’s limits: Appraisal binds only on the value, not on liability or coverage disputes.
- Consider legal advice: If the insurer refuses to honor the award, consult an attorney skilled in insurance disputes.