How to Invoke an Insurance Appraisal Clause to Challenge a Low Diminished Value Offer in NH
Disclaimer: This article provides general information under New Hampshire law. It is not legal advice. Consult a qualified attorney for advice about your specific situation.
Detailed Answer
When your insurer issues a low diminished value offer after a covered loss, you can invoke the appraisal clause in your policy to obtain an independent valuation. In New Hampshire, appraisal is a contractual right found in most property and casualty policies. It offers a faster, less formal alternative to litigation and leverages impartial experts to assess loss value.
1. Locate Your Appraisal Clause
Review your insurance policy under headings such as “Appraisal,” “Valuation,” or “Loss Settlement.” The clause typically outlines:
• A requirement for written demand
• Timelines for selecting appraisers
• Procedures for choosing an umpire if appraisers disagree
2. Deliver Written Demand
Send a certified letter or email to your insurer stating that you formally invoke the appraisal clause. Include:
• A clear statement: “I hereby demand an appraisal under the appraisal clause of my policy.”
• Your policy number and claim number
• Proposed deadline for the insurer’s response (e.g., 30 days)
3. Appraiser Selection
Under the clause, you and the insurer each select a qualified appraiser. You can name a licensed appraiser or cost estimator familiar with diminished value issues.
4. Umpire and Panel Decision
If your appraiser and the insurer’s appraiser cannot agree on value, they jointly select an umpire. If they cannot agree on an umpire within a set period (often 15 days), each party names a candidate and those candidates appoint the umpire.
The written decision signed by any two of the three (your appraiser, insurer’s appraiser, umpire) sets the final diminished value. You can enforce this decision under New Hampshire’s arbitration statutes (RSA chapter 542).
5. Enforcement under New Hampshire Law
If the insurer refuses to abide by the appraisal award, you may file a petition in superior court to confirm the award as provided by RSA 542:1. This process treats the panel decision as binding, similar to an arbitration award. See RSA 542:1 (arbitration enforcement).
Helpful Hints
- Review policy timelines closely to avoid waiving appraisal rights.
- Keep copies of all correspondence, including certified mail receipts.
- Choose an appraiser with specific experience in diminished value claims.
- Agree on a neutral umpire early to prevent delays.
- Understand that appraisal applies only to value disputes, not coverage issues.