Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance specific to your situation.
Detailed Answer
Under Connecticut law, an appraisal clause in an auto or property insurance policy allows you and the insurer to resolve a dispute over the amount of loss without litigation. If you believe the insurer’s diminished value offer is too low, you can invoke that clause to obtain an independent valuation. Courts in Connecticut generally uphold appraisal clauses as binding contracts (Conn. Gen. Stat. § 38a-321).
1. Review Your Policy Language
Locate the appraisal clause in your insurance contract. It typically appears under “Conditions” or “Loss Settlement.” Note any deadlines, notice requirements, and steps to appoint your own appraiser.
2. Issue a Written Demand
Send a certified letter or email to your insurer stating that you invoke the appraisal clause to determine the fair diminished value of your vehicle. Include policy number, claim number, and a succinct statement of disagreement.
3. Appraiser Selection
Your policy will specify how to select an appraiser. You choose one licensed by Connecticut; the insurer chooses another. If either party fails to appoint within the policy’s timeframe (often 20 days), you can petition the Connecticut Superior Court to enforce appointment.
4. Umpire Process
If your appraiser and the insurer’s appraiser cannot agree on the loss amount, they jointly select a neutral umpire. If they cannot agree on an umpire, either party may ask a judge to appoint one.
5. Determination and Binding Award
Each appraiser submits a written estimate to the umpire. Once two of the three parties agree, the umpire prepares a binding appraisal award. This award sets the value of your diminished value loss.
6. Enforcing the Appraisal Award
After you receive the award, submit it to the insurer. The insurer must pay the award amount less any applicable deductible. If the insurer refuses, file a motion to confirm the appraisal award in Connecticut Superior Court. The court will enter judgment in that amount.
Helpful Hints
- Act promptly: Note all deadlines in the appraisal clause to avoid waiving your rights.
- Document communications: Keep copies of all letters, emails, and certified mail receipts.
- Choose a qualified appraiser: Look for certified appraisers experienced in diminished value assessments.
- Understand costs: Each party typically pays its own appraiser; you split umpire fees.
- Seek counsel early: A Connecticut attorney can help if the insurer disputes your right to appraisal.
- Know your remedies: If appraisal fails or the insurer challenges it, you can still pursue a claim in court.