Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
Under Oklahoma law, many auto and property insurance policies include an appraisal clause that lets you challenge a low diminished value offer by requiring both you and your insurer to hire independent appraisers who negotiate or select an umpire to determine the loss. The process is contract-driven, so start by reviewing your policy’s appraisal provisions. Here’s how to invoke it:
1. Review Your Insurance Policy
Locate the Appraisal Clause in your declarations or conditions section. It typically states:
- Time limits for requesting appraisal (often 60 days after dispute).
- Requirements for a written demand.
- Selection of appraisers and umpire.
- Binding nature of the decision.
2. Submit a Written Demand for Appraisal
Draft a clear, dated letter to your insurer citing the appraisal clause. Include:
- Policy number and date of loss.
- Statement that you demand appraisal under the policy’s appraisal clause.
- Your contact information and address.
Send the letter via certified mail or another traceable method. Retain proof of delivery.
3. Select Your Appraiser
You have the right to appoint a competent appraiser—often a certified auto damage appraiser or qualified mechanic. The insurer will separately appoint its own appraiser. If either party fails to appoint within the policy’s timeframe (e.g., 15 or 30 days), you may escalate by notifying the insurer in writing or seeking court intervention.
4. Appraiser and Umpire Process
After appointment:
- Both appraisers inspect the vehicle and share repair estimates, diminished value calculations and supporting documentation.
- If they agree on the value, that figure is binding.
- If they disagree, they select a neutral umpire. If they cannot agree on an umpire, either party can ask a court to appoint one.
Appraisers and the umpire decide on the amount of loss by a majority vote. This decision is final and binding.
5. Binding Decision and Payment
Once the appraisal award is issued, you must submit it to the insurer. Oklahoma courts recognize appraisal awards as enforceable under general contract principles. If the insurer refuses payment, you can file a petition in district court to confirm the award as a judgment.
If you encounter unreasonable delay or denial of appraisal, you may file a complaint with the Oklahoma Insurance Department citing unfair claim practices under 36 O.S. § 3636.
Helpful Hints
- Keep all communications in writing and save proof of delivery.
- Hire an appraiser experienced in diminished value claims.
- Gather repair invoices, market value data and depreciation schedules.
- Track deadlines closely; missing a time limit can forfeit appraisal rights.
- Consider consulting an attorney if the insurer challenges your appraisal demand or the umpire process.