Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for guidance on your specific situation.
Detailed Answer
If your insurer’s diminished value offer feels unreasonably low, you can invoke the appraisal clause in your auto policy to secure an independent valuation. In Ohio, appraisal clauses are contractual provisions that let you and the insurer each select a neutral appraiser, who then determine the fair value of your loss. Their decision is binding on both parties.
1. Locate the Appraisal Clause
Review your insurance policy under the “Conditions” or “Loss Settlement” section. The clause will state language such as: “If we and you disagree on the amount of loss, either may demand an appraisal.” Appraisal provisions are approved by the Ohio Department of Insurance under Ohio Rev. Code § 3901.05 (codes.ohio.gov/orc/3901.05).
2. Follow the Policy’s Written-Demand Procedure
Most policies require a written demand for appraisal. Send a certified letter to your insurer’s claims department stating you elect appraisal under the policy. Include: policy number, date of loss, vehicle details, and a clear statement of disagreement with the insurer’s valuation.
3. Select Your Appraiser
After the insurer acknowledges your demand, you must choose a qualified appraiser. Experts in collision repair or vehicle valuation are common choices. Ohio doesn’t regulate appraisal timelines, so act promptly.
4. Insurer Appoints Their Appraiser
The insurer will appoint its own appraiser. Expect a notice within 10–20 days of your demand, though your policy may set a different deadline.
5. Exchange Estimates and Attempt Agreement
Both appraisers will inspect the vehicle, prepare itemized estimates, and exchange them. Often, they can agree on the value. If they agree, that valuation binds both you and the insurer.
6. Involve an Umpire if Needed
If your appraiser and the insurer’s appraiser disagree, they appoint a neutral umpire. Each party typically shares the umpire’s fees equally. The umpire reviews both estimates, inspects the vehicle if needed, and establishes a final value.
7. Binding Decision
In Ohio, appraisal decisions are binding under the policy. You and the insurer must accept the final amount as the fair cash value of diminished value, subject to any applicable deductibles.
Legal Context: While Ohio law doesn’t prescribe specific appraisal procedures, insurers must follow their policy terms and avoid unfair claim practices under Ohio Rev. Code § 3901.191 (codes.ohio.gov/orc/3901.191).
Helpful Hints
- Keep detailed records of all communications and mailed documents.
- Review any deadlines in your policy; missing a deadline may waive your right to appraisal.
- Choose an appraiser with experience in diminished value claims.
- Confirm umpire qualifications before appointment to avoid delays.
- Consider consulting an attorney if the insurer refuses to honor the appraisal clause.