This article explains how to invoke the appraisal clause in your auto insurance policy to challenge a low diminished value offer under Wisconsin law. It covers your rights, statutory references, and a step-by-step process. Disclaimer: This is not legal advice.
What Is Diminished Value?
Diminished value is the reduction in a vehicle’s market value after repairs. Even if repairs restore mechanical and cosmetic condition, the history of damage can lower resale price. Insurers may undervalue or deny diminished value claims.
Wisconsin Appraisal Clause: Wis. Stat. § 631.24
Wisconsin Statute requires most auto insurance policies to include an appraisal clause for first-party claims over property damage. Under Wis. Stat. § 631.24, if you dispute the insurer’s valuation, you can demand appraisal.
Step-by-Step Guide to Invoking the Appraisal Clause
- Review your policy: Locate the appraisal clause in your declarations or conditions. Note deadlines and requirements.
- Send a written demand: Mail or email your insurer a formal appraisal demand. Include your policy number, claim number, and statement that you invoke the appraisal clause.
- Select an appraiser: You and the insurer each choose an independent appraiser. The appraiser must be licensed and acceptable under policy terms.
- Appraiser meeting and umpire selection: Your appraiser and the insurer’s appraiser inspect the vehicle and exchange valuations. If they cannot agree on diminished value, they appoint an umpire.
- Final appraisal award: The decision of any two of the three appraisers (your appraiser, insurer’s appraiser, umpire) sets the amount of loss. That award is binding under Wisconsin law.
Potential Outcomes and Next Steps
If the appraisal award exceeds the insurer’s offer, the insurer must pay the difference plus any recoverable interest and fees allowed by your policy or statute. If appraisal fails or policy excludes diminished value, consider mediation or contacting an attorney.
Helpful Hints
- Act quickly: Watch policy timelines for appraisal demands.
- Keep records: Document all communications and appraisal reports.
- Choose appraisers wisely: Select professionals experienced in diminished value appraisals.
- Understand fees: Typically, each party pays its own appraiser and splits the umpire’s fee.
- Read policy carefully: Some policies exclude diminished value or limit appraisal scope.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult an attorney for advice specific to your situation.