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Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult an attorney for guidance on your specific situation.

Detailed Answer

Under Oregon law, most property insurance policies include an appraisal clause allowing policyholders and insurers to resolve disputes over the value of a loss without litigation. If your insurer’s diminished value offer seems too low, invoking this clause can lead to a neutral appraisal and a binding valuation. Here’s how to proceed:

1. Review your policy. Locate the appraisal clause, usually under a “Loss Conditions” or “General Conditions” section. Note any requirements for timing, form of request, and fees.
2. Send a written demand. Under the policy and ORS 742.400, you must make a written request to initiate appraisal. Include:
   • A statement that you invoke the appraisal clause to determine the diminished value of your vehicle losses.
   • Copies of any estimates, repair invoices, and photographs supporting your claimed value.
   • Your selected appraiser’s name, address, and qualifications.
3. Select your appraiser. Choose a qualified, independent appraiser experienced in diminished value assessments. Your insurer must appoint a second appraiser. Each party pays its own appraiser’s fee.
4. Agree on an umpire. If the two appraisers cannot agree on a third neutral umpire, ask a local court judge or an appraisal board to appoint one. ORS 742.400 allows an umpire to resolve any appraisal deadlock.
5. Exchange appraisal reports. Your appraiser and the insurer’s appraiser each submit a written report of the vehicle’s diminished value. If they agree, that amount becomes binding.
6. Umpire determination. If appraisers disagree, they submit their valuations to the umpire. The umpire selects one of the two amounts or an intermediate figure. Under ORS 742.400, that final valuation is binding on both you and the insurer.
7. Payment and next steps. Once the appraisal is complete, submit the binding value to your insurer. The insurer must pay the difference between its original offer and the appraised diminished value within the timeframe set by your policy and Oregon’s prompt payment requirements.

Relevant statute: ORS 742.400 (Appraisal clause) 100
https://www.oregonlegislature.gov/bills_laws/ors/ors742.html#742.400

Helpful Hints

• Keep copies of all communications and appraisal reports.
• Note any deadlines for requesting appraisal in your policy.
• Document damage thoroughly with photos before repairs.
• Choose an appraiser familiar with diminished value standards in Oregon.
• Confirm fee-sharing obligations for the umpire appointment.
• Review Oregon’s Prompt Payment of Claims law (ORS 742.061) for timing on insurer payments.