Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In North Dakota, many auto insurance policies include an appraisal clause that lets you challenge the insurer’s valuation of your vehicle’s diminished value. The appraisal process provides a contractual way to resolve disputes over the amount of loss. Under North Dakota law, appraisal clauses are generally enforceable when both parties disagree on damage valuation. See North Dakota Century Code § 26.1-27-03 (https://www.legis.nd.gov/cencode/t26-1c27.html).
1. Review Your Policy Language
Locate the appraisal clause in your policy declarations or conditions section. Note any deadlines, notice requirements and cost-sharing provisions. Some policies require you to request appraisal within a certain number of days after the insurer’s written offer.
2. Send a Written Demand
Prepare a written demand for appraisal. Include:
- Policy number and date of loss
- A statement that you invoke the appraisal clause to determine diminished value
- Your contact information
- Documentation of your own valuation or appraisal report
Deliver this demand by certified mail or another trackable method. Retain proof of delivery.
3. Select Your Appraiser
Once your insurer acknowledges the demand, each party picks a qualified appraiser—typically a trained auto damage appraiser or certified mechanic. The appraisers must be independent and have experience in vehicle diminished value assessments.
4. Choose an Umpire if Needed
If the two appraisers cannot agree on a final diminished value figure, they jointly select a neutral umpire. If they cannot agree on an umpire, either party can ask a court to appoint one. The umpire resolves disputes between the appraisers.
5. Share Costs and Complete Appraisal
Typically, each party pays its own appraiser, and both share the umpire’s fees equally. The appraisal award is binding and final on both you and the insurer as to the amount of loss.
6. Follow Up and Payment
After the appraisal award, send it to your insurer with a demand for payment. If the insurer still refuses to pay, you may consider filing a bad faith or breach of contract claim in North Dakota courts.
Helpful Hints
- Act promptly: Note any strict timeframes in your policy to invoke appraisal.
- Document everything: Keep copies of all correspondence and valuation reports.
- Choose experienced appraisers: Look for professionals with DIMVA or similar credentials.
- Understand cost-sharing: Confirm who pays the umpire and the timing of payment.
- Consider legal advice: An attorney can review your policy language and deadlines.