Detailed Answer
If your insurer’s diminished value offer feels unreasonably low, you can trigger the appraisal clause in your policy. An appraisal clause lets you and the insurer appoint independent appraisers who determine the loss value. Here’s how to invoke it under Vermont law:
- Review your policy. Locate the appraisal provision—typically under “Conditions” or “Loss Settlement.” Note deadlines and notice requirements. Most clauses require you to send a written demand for appraisal.
- Send a written demand. Draft a letter to your insurer stating that you invoke the appraisal provision to determine the diminished value of your vehicle. Include facts such as the claim number, vehicle details, date of loss, and policy number. Send it via certified mail or another trackable method.
- Appraiser appointment. Once the insurer receives your demand, both sides appoint independent appraisers. You choose one appraiser; the insurer will choose another. If either side fails to select an appraiser within the time frame set by your policy (often 20–30 days), court rules or Vermont statutory timelines may apply.
- Select an umpire. If your appraisers cannot agree on the diminished value, they jointly select an umpire. If they cannot agree on an umpire within the policy deadline, either party may ask a court to appoint one.
- Proceed with appraisal. Your two appraisers and the umpire inspect the vehicle, review repair records, and consider comparable sales data. They prepare a written appraisal report stating the agreed diminished value.
- Binding award. Under most policies—and consistent with Vermont contract law—the appraisal award is binding. You can enforce the award in Vermont Civil Court if the insurer refuses to pay the agreed amount.
- Enforce the award. File a motion or complaint in the appropriate civil division of Vermont Superior Court. Attach the appraisal report and correspondence showing your demand and the insurer’s refusal to pay.
Vermont statute recognizes contractual appraisal provisions in insurance policies. See 8 V.S.A. § 4722 (“Proof of loss; appraisal”) for requirements governing proof of loss and appraisal procedures: https://legislature.vermont.gov/statutes/section/8/129/00472. Although Vermont law doesn’t mandate appraisal in every policy, courts enforce provisions the parties agreed to when they purchased coverage.
Disclaimer: This article provides general information only. It does not constitute legal advice. Consult a licensed Vermont attorney before taking action.
Helpful Hints
- Keep copies of all correspondence and certified mail receipts.
- Choose an appraiser experienced in diminished value claims.
- Review comparable vehicles’ sales data to support your valuation.
- Check your policy for any time limits to demand appraisal.
- Consider mediation if disputes arise before or during appraisal.
- Document all repair estimates and invoice details.