Detailed Answer
This article explains how an insured in Nevada can invoke the appraisal clause in their property or auto insurance policy to challenge a low diminished value offer. It does not constitute legal advice. Always consult a licensed attorney or insurance professional for advice tailored to your situation.
1. Locate the Appraisal Clause in Your Policy
Most property and auto insurance policies include an appraisal clause under the sections titled “Loss Settlement,” “Property Damage,” or “Diminished Value.” This clause lets you or the insurer demand an independent appraisal when you disagree on the value of a loss. Nevada law enforces these clauses as written: see NRS 686A.310.
2. Provide a Written Demand for Appraisal
Submit a formal written demand to your insurance company stating you invoke the appraisal clause due to a dispute over diminished value. Include:
- Your full name, policy number and claim number.
- A clear statement that you request an appraisal under the policy’s appraisal clause.
- The date you received the insurer’s diminished value offer.
3. Appraiser Selection and Exchange
After the insurer acknowledges your demand, both sides select a qualified, independent appraiser. Nevada policies typically allow 20 days to name your appraiser. The insurer has a similar period. If one side fails to select an appraiser, the other may petition a court to appoint one.
4. Conducting the Appraisal
Your appraiser and the insurer’s appraiser inspect the vehicle or property, review repair records and market data, then each provides an independent estimate of diminished value. If they agree, they execute a joint appraisal award. If they cannot agree, they choose a neutral umpire who reviews both estimates and issues a binding decision.
5. Binding Appraisal Award
Under the policy’s appraisal clause and Nevada law, the appraisal award is final and binding on both you and the insurer. The insurer must pay the amount determined by the appraisal, subject to your policy deductible and limits.
Tip: After the appraisal award, you preserve your right under Nevada law to pursue any remaining coverage disputes or bad-faith claims if the insurer still fails to pay.
Helpful Hints
- Review your policy’s appraisal deadlines carefully to avoid waiver of rights.
- Choose an appraiser with proven experience in diminished value claims.
- Document damage thoroughly with photographs, repair estimates and invoices.
- Keep all communications in writing and save copies of correspondence.
- Consider consulting an attorney if the insurer refuses or delays the appraisal process.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Always consult a licensed attorney for advice on your specific circumstances.