How Long Does It Take to Get an Insurance Appraisal?

Despite the fact that many commercial property owners would prefer a straightforward insurance claims process, this is frequently not the case. Claims for property damage insurance are frequently complex, and policyholders can be readily taken advantage of in an effort to regain their financial footing. Nonetheless, if the insurance company and the insured can't agree on the value of a claim, either side may request an assessment. An appraisal may be used to settle a pricing disagreement without filing a lawsuit, which may be a quicker and less expensive way to settle a claim.

Although an appraisal may be quicker than a lawsuit, it can and frequently does lengthen the total claims process. Once a party invokes the appraisal clause, the amount of loss determined by the appraisal is binding on all parties. In addition, each party must hire a qualified, impartial appraiser to quantify the damage and calculate the amount of loss. If the parties' appraisers are unable to agree on a value, an arbitrator will be appointed to make a determination. Occasionally, it can take months for each side to employ an appraiser before assessing separately.

Most rules stipulate a time limit for each party to employ an appraiser, and some may additionally stipulate a time limit for the selection of an arbitrator. However, there are no limitations on the entire duration of the process; some may take months, while others may take years. Fortunately, Texas rules may discourage insurance firms from manipulating the appraisal process to postpone payment of legitimate claims.

The Evaluation Procedure and TPPCA

The Texas Prompt Payment of Claims Act (TPPCA) imposes various time limits upon the filing of a property damage claim by a policyholder. For instance, insurance firms must begin investigating a claim once they have received all requested images, videos, other items, statements, and forms. The insurer then has 15 days to notify the policyholder of the claim's acceptance or denial and provide an explanation if the claim is denied. This period may be extended by 45 days if the insurer tells the policyholder in a timely manner that additional time is required to make the determination of a claim. The insurer has sixty days to pay valid claims from the moment it receives all the appropriate documents, forms, and statements from the policyholder. Although there are no uniform deadlines for completing the assessment process, the procedure generally consists of the following steps:

• After receiving a formal request for an assessment from the opposing party, both the insurance company and the policyholder are required to choose qualified and unbiased appraisers to investigate the claim and make preliminary findings.
• The two appraisers will then choose an arbitrator if they cannot agree on the claims evaluation. If the appraisers are unable to agree on an arbitrator, they may ask a judge or court of record to make a determination.
• Once an arbitrator has been chosen and the appraisers have investigated the claim, they will independently establish the amount of loss and provide a written report of agreement, which will serve as the ultimate amount of loss.
• If the appraisers cannot agree on the amount of the loss, they will submit their differing estimates to the arbitrator, who will make the final conclusion.

Insurance Providers Can Benefit From the Evaluation Process

In spite of the benefits that using an appraisal clause might offer to resolve insurance claim disputes, the policyholder often suffers as a result. Even after an appraisal award has been decided, the insurance company retains the authority to deny the claim, which is one of the major disadvantages for insureds. This means that consumers would not only have to wait months for an appraisal and pay for the appraisers and arbitrator, but the insurance could dismiss their claim nonetheless. This wastes extra time, money, and resources, resulting in an even bigger power disparity between the policyholder and the insurance firm.

In other cases, the amount in dispute may be too little to justify an assessment, especially when the policyholder is required to contribute to the cost of engaging their own appraiser and an umpire. In addition, it might be difficult for policyholders to find an appraiser who is ready to work in their best interests, as many property appraisers prefer to deal with insurance companies. In tandem, it can be difficult to locate unbiased arbitrators and obtain clearance from the insurance company's appraiser.