Navigating the Murky Waters: The Perils and Pitfalls of Insurance Appraisal


Insurance appraisals are often viewed as a last resort for policyholders and insurers to resolve disputes over property damage claims. While this process can provide a resolution, it comes with its own set of challenges and potential pitfalls. In this blog post, we'll explore the perils and pitfalls of insurance appraisal, shedding light on what policyholders should be aware of when navigating this complex terrain.

1. Limited Scope of Appraisal:

   One of the perils of insurance appraisal is its limited scope. Appraisals typically focus solely on the amount of loss and not on coverage disputes or policy interpretation issues. If there are underlying disagreements about coverage, an appraisal may not address these fundamental concerns.

2. Appraiser Independence Concerns:

   Appraisers are often chosen by each party involved – the policyholder and the insurance company. This raises concerns about the independence of the appraisers. If an appraiser is perceived to be biased toward one party, it can compromise the fairness of the appraisal process.

3. Misunderstanding the Process:

   Many policyholders may not fully understand the appraisal process, leading to unrealistic expectations. It's essential to recognize that an appraisal is not a reevaluation of the entire claim but rather an assessment of the disputed amount. Failure to understand this distinction can result in dissatisfaction with the outcome.

4. Challenges in Appraiser Selection:

   Selecting a qualified and impartial appraiser can be challenging. Both parties must agree on the selection, and finding individuals with the necessary expertise who are acceptable to both sides can prove difficult. This challenge may contribute to delays in the appraisal process.

5. Overlooking Policy Language:

   Policyholders may sometimes overlook the specific language in their insurance policy when pursuing an appraisal. The policy outlines the terms and conditions under which an appraisal is appropriate. Ignoring or misinterpreting this language can lead to unnecessary disputes and delays.

6. Disputes over Methodology:

   Appraisers may employ different methodologies to assess the value of the loss. Disagreements over the chosen methodology can be a significant pitfall, as it may lead to further disputes and hinder the resolution process.

7. No Guarantees of Fairness:

   While an appraisal is intended to be a fair and impartial process, there is no guarantee that the outcome will be entirely equitable. The human element in the process, combined with potential biases, means that the results may not always reflect a true and accurate assessment of the loss.

8. Appraisal Costs:

   The costs associated with the appraisal process can be another pitfall. Each party typically bears the cost of their chosen appraiser, and these expenses can add up quickly. For policyholders already dealing with the financial strain of a claim, additional costs can be burdensome.


Navigating the perils and pitfalls of insurance appraisal requires a clear understanding of the process and realistic expectations. Policyholders should approach the appraisal process with caution, ensuring that they are well-informed, have selected impartial appraisers, and are aware of the limitations of the appraisal scope. While appraisal can provide a resolution, being aware of its challenges is crucial to a smoother and more satisfactory claims process.

If you ever find yourself with a bad faith insurance claim, and you don't know where to turn, call us 

We find a way to win.

Get In Touch

How Can We Help?

We will be contacting you soon