Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
An appraisal clause in your auto insurance policy allows you and the insurer to settle disputes over the amount of loss without litigation. Under Rhode Island law, appraisal provisions are contractual and, when they include an arbitration mechanism, fall under the Revised Uniform Arbitration Act (R.I. Gen. Laws Title 10, Chapter 3).
- Review your policy. Locate the appraisal clause—often under “Your Duties After Loss” or “Appraisal.” Note any time limits, notice requirements, and procedural steps.
- Gather evidence of diminished value. Secure a professional diminished value appraisal comparing your vehicle’s pre-loss fair market value to its post-repair value.
- Send a written demand for appraisal. Draft a letter invoking the appraisal clause. Include a description of the loss, the diminished value you claim, and your selected appraiser’s name and contact information. Send via certified mail, return receipt requested.
- Designate your appraiser. Under most clauses, both you and the insurer choose independent appraisers. If the two values differ beyond a set threshold, the appraisers jointly select a neutral umpire.
- Proceed with the appraisal process. Your appraiser, the insurer’s appraiser, and, if necessary, the umpire conduct an independent review of repair bills, depreciation data, and valuation guides.
- Enforce the award. Once appraisers (or the umpire) issue a binding award, the insurer must pay the agreed amount. If the insurer refuses, you may petition a Rhode Island Superior Court to compel payment under the arbitration statute (R.I. Gen. Laws § 10-3-13).
Helpful Hints
- Keep all communications in writing and retain copies.
- Strictly comply with any deadlines in your policy’s appraisal clause.
- Choose appraisers experienced in diminished value analysis.
- Send your appraisal demand via certified mail for proof of delivery.
- Consider mediation if appraisal results stall or dispute procedural issues.
- Consult an attorney if the insurer still refuses to honor the appraisal award.