Cheap Insurance Companies and Their Services

To some people, cheap insurance companies are merely a myth, to others a reality they do not ever want to acknowledge, but one fact remains the same. Cheap insurance businesses are a commodity most people do not avail for different reasons. Some are scared that they might end up paying more than advertised others just do not want the extra expense.

It is true that there are quite a lot of insurance businesses out there on the internet that are not cheap at all, as well as insurance companies that are cheap and offer the best service. Then there are also cheap insurance businesses that are not just cheap with awful service (these are the ones you would want to avoid). If you want to save money while spending yet at the same time get the best service you will have to do some search into various cheap insurance companies.

There are two ways to find a good insurance company; online and by roaming around, but there is only one way to get a cheap insurance from a company i. E. Search the internet. The reason is simple, where an insurance company caters to clients across the state or just in your area, an online insurance company caters to people across America, and more business means better competition, which ultimately leads to cheaper and lower rates.

Keeping the above equation I know you will agree that the best deals are to be found online, however if you up and want to do business with the most advertised of insurance dealers, you are surely in for a heart-break. These companies in order to compensate for the high costs of advertisements offer some pretty high rates to their customers.

If you truly are looking for a cheap and reliable rate for your insurance, it would be wise for you go for the moderate kind of insurance businesses. These companies could be anywhere after the first ten or so search results. You can also choose to narrow down your results to your city, state, or even by using your zip code if you are searching for a company locally.

Remember to check on the bare minimum of insurance prerequisite in your state and then go forth with negotiating the essentials before negotiating the rates. Almost every state has some sort of bare minimum for their citizens insurance policies these days and it is entirely up to you to convert this slight problem into a blessing that does the most good for you.

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All About Insurance and How to Find Cheap Insurance

Insurance is very important. The way that insurance works is that a whole lot of people pay a small amount of money into an insurance pool. This pool of money will protect these people against some sort of risk, such as the risk of your car getting stolen. Because many people pay money into the pool, the pool becomes rich and full of money. Then if one person who has paid money into the pool gets their car stolen, then the insurance company will give them money out of the pool. The insurance pool can pay out much more money than that individual person had by himself.

The only reason that insurance works is because the problem that is the risk isn’t so big that it happens to everyone. Just think if everyone who invested money into the insurance pool had a car that got stolen, the insurance company wouldn’t be able to pay everyone out lots of money. Insurance companies spend huge amounts of money paying risk analyzers to work out how much risk is in place. They also pay an effective legal team to stipulate good terms and conditions so that clients don’t take advantage of the insurance company by making false claims.

Of course the bigger the company and the more clients it is, the more likely it is to be able to offer cheap insurance to the buyer. The more people that pay money into the pool, the bigger the pool of money becomes.

Well known companies are also able to offer cheap insurance, because they have a far bigger marketing budget, so they can reach more people and potential clients. It s also good to go with a big company, because they are more likely to be able to pay you out. They have a reputation to uphold.

On the other hand, big insurance companies have very good legal teams, so they might have to get out of paying you, by referring to small print in the contract that you may not have seen. So whenever you buy cheap insurance be sure to read the small print.

It is easy to find cheap insurance nowadays. Many companies are offering great deals. And a simple internet search will have you face to face with insurance quotes in no time at all.

Insurance is available in all sorts of areas. You can get insurance for your possessions such as your house, car or boat. You can also get health insurance or travel insurance. Some Insurance companies offer cheaper insurance packages to women. Some health insurance companies will not cover you if you have pre-existing medical conditions. You also get cheap life insurance or funeral plans.

Some people may want to insure their body parts, for example a hand model may insure her hands, because if she no longer has them she cannot work. You can basically find someone to insure you for just about anything. When you make a deal with an insurer, you are basically saying, in exchange for paying you a small fee, you will take financial responsibility for me if the stipulated event occurs.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance Quotes

How does your decision to compare cheap insurance quotes on the internet help you save precious time and money? The insurance market has become so competitive that it is impossible to identify a single insurance company as the best one around. There are many variable factors including the type of insurance that one wants, income and lifestyle of the individual, the asset that one wants to insure and the amount of premium that one is prepared to pay. In such a scenario, one cannot blame an individual for opting to compare cheap insurance quotes instead of entering the confusing world of insurance analysis.

How do you save money when you compare cheap insurance quotes? If you opt for quotes comparison, chances are very high that you will quickly identify the cheapest and most beneficial insurance policy for your life, car, home or any other asset. You will get a clear tabular analysis which will tell you how much one has to pay for each and every policy under consideration. If you do not compare cheap insurance quotes, you will have to prepare a comparative statement manually. This is next to impossible considering the fact that the average individual is rarely, if ever, conversant with how insurance policies work.

Another reason why one should compare cheap insurance quotes is that it helps save a lot of time. Getting quotes online helps you get all the information you want in a jiffy. You need not visit each and every insurance company’s office just to compare cheap insurance quotes. You need to state the amount of coverage you want and the amount of premium that you will have to pay will be flashed on the screen instantly. You can also get quotes through the telephone. In either case, a lot of time and effort shall be saved. If one considers the gas that one saves by avoiding visits to numerous insurance offices, the benefits of these free insurance quotes become even more significant. Never again will you have to take time out of your busy schedule to complete insurance related paper work. The web will help you take care of all that.

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Compare Cheap Insurance Quotes – Save Time and Money by Comparing Cheap Insurance

Before the invention and wide accessibility of the internet, people had to call around to compare cheap insurance quotes. They could spend hours of their lives on the phone only to find out that the best policy for them was the first one they called. They would then have to call the office back and go through the explanation again. Once they did they still had to go down to the local office and sign paper work and make a payment before they were insured.

Thankfully, times have changed and people don’t have to spend hours on the phone just to find the best rate. Logging on and going to your prospective insurance company takes a lot of time too. So how do you compare cheap insurance quotes to get the best deal on your car insurance? Just go to your favorite search engine instead.

By doing a search to compare cheap insurance quotes you will find a list of sites that offer multiple comparisons right on their site. Generally, these sites are not affiliated with any specific insurance company so you can be assured an accurate comparison.

It’s simple to compare cheap insurance quotes this way. All you have to do is input your information one time. Set the restrictions for coverage type and deductibles and hit the compare/search button. Within seconds a listing of all the major insurance companies will be appear on your screen. You can scroll through them and find the one that has the best coverage at the best price for you.

Often these sites will allow you to purchase insurance directly from them and offer discounts for doing so. By comparing cheap insurance quotes on line through one of the sites will save you time and money.

If you prefer spending endless hours on the phone just to get the best rate go right ahead. Using the internet can take the hassle out of buying car insurance. Who needs another headache when all you’re looking for is the best coverage in your price range?

It is important to compare insurance quotes before getting signed up with an insurance policy. When you compare insurance quotes you can rest assured you are saving both time and money because you are guaranteed to get the lowest insurance quote.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Comparing Cheap Insurance Quotes – The Best Trade Off Between Premium and Deductible

Shopping in general involves a lot of decision making. You have to be even more careful and use more analysis when buying insurance irrespective of the type of coverage you are looking for. You have to get an affordable deal that offers sufficient coverage. The best way in which you can do this is to collect as many cheap insurance quotes as possible. You can get this job done in no more than half an hour if you use the services of an online provider that gives you a bunch of offers from different insurers for free.

The more difficult part comes next. You will have to compare the different cheap insurance quotes you have obtained. It is essential for you to look for the most affordable of all deals. Apart from analyzing the rates you should check whether the insurance company offers any discounts that you might be eligible for. More importantly, you have to decide on the trade off between the premium and the deductible you will have to pay. Setting these two costs correctly will allow you to save a lot of money and to manage your budget more efficiently.

The premium is basically the fee that you have to pay annually or monthly for the coverage you get. In case you make a claim on your policy and the insurer approves it you will have to pay a deductible. It can be a set sum, but in most cases it is a percentage of the cost of the claim. You should also keep in mind that with health insurance plans the deductible is fixed and has to be paid once a year. Generally, the higher the deductible is the lower the premium is and vice versa.

You can save a lot by increasing your deductible. This is particularly beneficial when you buy auto and home insurance policies since you will have to incur this cost in an event that may never actually happen. At the same time everything is possible. Thus, it is best for you to set a deductible that you can afford to pay it at any time. You have to decide on how much you would want to increase this cost depending on a number of factors.

The main one is the premium. Generally, the experts recommend to any buyer to accept as high premium as they can comfortably afford. You should do some calculations in order to decide how much of your monthly income you can set aside for insurance. At the same time you have to take into account your savings. They will allow you to determine how much you could afford to take out of your pocket if you made a claim today. If this sum is not very large, you may think twice before setting a way too large deductible.

Overall, it is up to you to decide on the best trade off between premium and deductible. This is an individual decision that you have to take when comparing cheap insurance quotes. You have to make your choice by taking into consideration all relevant factors.

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Low Rate Health Insurance Quotes – Find and Compare Cheap Insurance Rates Online

First, ask your friends around you about the insurance policies, which they are using, but the most important thing to keep in mind is that your friend’s need may be different from the one, which is used by you.

The other thing is that you should not opt for a particular plan just because your friend has recommended to you. Instead, you have to go through the plan carefully and see that the plan provides you with different type of services that you are looking for. After all the research, one could choose a plan and can proceed with the plan.

The advantage for looking out for cheap rates online is the competition that is present among the insurance company’s, and each insurance company is alert of it. If you are looking to have cheap insurance then you have to compare the rates with different companies.

The most important thing to look out for is the zip codes, which are even ten miles from each one can actually have a huge difference in the periodical premium charges that is to be paid. This is also based on cost of livelihood and other factors as well.

If you are making a health insurance online, then you have to fill up the form online, where you have to answer some questions and it is a very fast process. There would be some general questions asked such as the age, the degree of risks, and the terms of premium and there benefits that is offered on the plan.

You can opt for a particular plan, which offers the services and the features, and if you think that, it will help your needs then you can opt for it. Some of them are comfortable with catastrophic insurances that would guard you from costly hospital and medical bills, but cannot have the coverage of doctor’s visits until a huge deductible is met.

Given the current recession it is important to make sure to prioritize your money and compare insurance quotes online. A good place to state would be an online website that actually allows you to compare insurance quotes online for free.

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Insurance Claim Denial – Know Your Rights

Insurance companies are not quick to advertise that good faith claims standards require them to investigate your insurance claim in a prompt and reasonable manner. Nor can they force you into an unwarranted insurance dispute grounded in unreasonable delay tactics and excessive demands.

The purpose of a legitimate insurance investigation is to pave the way for a fair and reasonable claim settlement. In the minority of situations where a claim denial is warranted, that insurance claim denial must be based on a solid and impartial investigation.

But unfortunately, dishonest insurance companies find ways to deny claim settlements rather than pay them. And these shady practices are based on the chance that by forcing you to wait, by forcing you to bow to their demands, you will eventually give up.

The more frequent unfair claim settlement schemes include unfair policy interpretations, unfounded coverage decisions, unreasonable demands for supporting information, and the most frequent of them all, the “ongoing investigation”.

These practices are conceived to generate extensive insurance claim delays, all without justification, all flawed. Following weeks and months of delays, you are at their mercy, not knowing whether your legitimate insurance claim will be honored or unfairly denied. And that’s the plan.

Your only chance is to accept the challenge of the insurance dispute. To do this, you must arm yourself with the knowledge to seize power from the insurance company.

You can begin with these basic insurance claim help tips.

Chances are your state has adopted the universal “Unfair Claims Settlement Practices Act”. These standards have been legislated into the laws of most all states, placing restrictions on insurance company unfair claims practices. For example:

• Insurance companies must promptly acknowledge and act upon your insurance claim. In some states, actions are required within a specified time period.
• Insurance companies must implement and follow stringent standards for the prompt investigation of all insurance claims.
• An insured person must be kept up to date on the progress of the insurance claim
• Insurance investigations are required to be both reasonable and timely.
• Insurance claim settlements must be fair and reasonable, and must meet reasonable expectations
• The insurance investigation cannot include unfair, unreasonable, and repeated demands for documents and supporting data as a requirement for settling your insurance claim.

Consistent violations of these regulations set the stage for an environment of unfair claims practices. You must learn how to recognize these tactics, and how to respond. Your goal is to achieve a fair claim settlement, even if that means you must rise to the obvious insurance dispute.

What should you do if you are the recipient of an unfair insurance claim denial? How can you protect your interests? Begin with the documentation.

• How were you notified of the claim denial? Denials must be sent to you in writing, they must be clear and precise, and they must specify the precise policy provisions that resulted in the claim denial.
• Insurance policies are contracts of adhesion, meaning the insurance company must interpret language to the benefit of the insured. Were the policy provisions fairly applied?
• Claim denials must be conducted in a reasonable and timely manner. Does the claim denial document support that such an investigation was conducted in regard to your claim?
• The insurance company must be prepared to defend its interpretation of the policy. Is that interpretation fair, impartial and relevant?

Here are some additional insurance claim help tips.

Study the “Unfair Claims Settlement Practices Act” for your state. Educate yourself on the laws and regulations that apply to unfair insurance practices. While these laws include penalties for unfair insurance practices, the authorities cannot intercede on your individual claim. Instead, take your knowledge of those laws to intervene on your own.

If the claim denial was issued by your insurance company, carefully study your policy. You must understand what your rights are according to that policy. And look specifically for appeals and review processes detailed in the policy. Some policy conditions require that you must meet these conditions before you can take further action, including the filing of a lawsuit.

An insurance denial must provide the specific conditions for that claim denial. An insurance company cannot ignore your claim, or place such obstacles in your way that you cannot possibly satisfy the unreasonable conditions. To the contrary, the company must resolve your insurance claim, and that resolution must be based on fairness and impartiality.

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How To File A Disability Insurance Claim: Avoiding Common Obstacles

You have worked hard your whole career, but now you find yourself unable to practice your profession because of a physical or mental disability. You’re not alone. In fact, some statistics indicate that a person in their mid-thirties has a 50:50 chance of experiencing a disabling condition that prevents them from working for at least three months before they retire. In addition, one out of seven workers will become disabled for a period of more than five years before reaching retirement.

Luckily, you were wise enough to purchase disability insurance to offset the risk that you would become disabled. Unfortunately, however, disability insurance companies have developed a sophisticated system to maximize profits and avoiding paying your claim, regardless of the merits of your condition. How can you avoid having your disability insurance claim denied or terminated?

Among the many hurdles you will likely face when filing a claim for disability insurance benefits are:

• Understanding, interpreting, and correctly following the terms of complex policies drafted by insurance companies;
• Recognizing, avoiding, and dealing with insurance companies’ efforts to wear out claimants by delaying the claim process;
• Ensuring that treating physicians take the time and effort to document the disability sufficiently and in a manner that is helpful to your claim;
• Avoiding insurance companies’ attempts to use out-of-context secret surveillance as a basis for terminating or denying your disability insurance claim;
• Ensuring that independent medical and psychological evaluations are conducted appropriately, fairly, and without risking injury;
• Fighting insurance companies’ attempts to terminate or deny disability insurance claims simply because the symptoms of your condition are subjective or self-reported;
• Overcoming the great number of other techniques and tools that insurance companies have developed to engineer a basis for denying legitimate disability insurance claims, because their primary goal is profit.

Complex and Confusing Insurance Policy Language

The language of every insurance policy is complex and confusing, drafted by attorneys and insurance company employees with an eye towards protecting their own interests. When denying or terminating a claim, insurance companies capitalize on the complexity of their policies at the expense of the insured. The truth is that there is no “standard” insurance policy contract, and the provisions vary dramatically from policy to policy, where coverage is usually circumscribed and restricted with different qualifying words and phrases. In order to overcome the insurance companies efforts to use jargon and legalese to avoid paying claims, it is crucial that a claimant understand the specific definitions of the key terms and phrases in the policy, and also the ambiguities in those words. When words or phrases are ambiguous or their meaning is not clear, courts will construe the meaning of those terms against the drafter (the insurance company) and in favor of the other party (the claimant). Having a thorough understanding of your policy language may be the most important step to filing your disability insurance claim.

Efforts To Delay The Claim Process

One of the most common techniques that insurance companies use to avoid paying benefits is drawing out the claims process for as long as possible. In this way, insurance companies can increase the attrition rate of claimants, such that legitimately disabled people will simply give up out of frustration. But, insurance companies have a legal obligation to make prompt decisions, and a claimant tolerate undue delays.

Working With Your Treating Physician

Perhaps the most important aspect of a successful disability claim is the medical documentation of your disability. Many physicians are extremely busy, and may not always take the time to write detailed and accurate reports of your condition. It is common for hurried physicians to simply copy-and-paste boiler-plate descriptive language into office visit notes that is actually false or inaccurate. In a rush to complete paper work, a doctor’s office visit note may include phrases that apply to most patients, but that are completely inaccurate as applied to you. For example, a doctor’s report from an office visit may say that “patient is in no apparent distress,” when in fact, the purpose of your appointment was to treat your chronic back pain that is preventing you from working.

In addition, depending on your relationship, they may not have any interest in devoting time to your disability insurance claim. But, fully discussing your condition with a compassionate treating physician is crucial to obtaining documentation of your condition that supports your claim.

Surveillance

After you file your disability insurance claim, it is very likely that you will be secretly videotaped or photographed by your insurance carrier during their investigation of your claim. If they are able to document you engaging in activities that you claimed you could not perform, they will likely use this evidence as a basis to terminate your claim. It is also not uncommon for insurance carriers to send these videos or to your treating physicians in an attempt to sour your relationship, and convince your physician to make statements that are against your interests. It is important to be on-guard against these tactics, recognizing that these out-of-context videos may be misconstrued to achieve the insurance company’s goals.

Independent Medical Examinations

Insurance companies often ask disability insurance claimants to submit to an “independent” medical examination performed by a physician chosen and paid by your insurance carrier. Obviously, this creates a conflict of interest, where the doctor evaluating your disability has an indirect incentive to improperly diagnose your condition. You may also be asked to undergo exams by someone other than a physician. All of these exams can be stressful and even painful or dangerous. It is not uncommon for portions of the exam to include protracted or intrusive diagnostic tests. Of course, the primary purpose of these exams is usually not to diagnose your condition. Rather, these exams are often just another tool insurance companies use to deny or terminate your claim. Therefore, it is important to be aware of your rights during this process.

Subjective Conditions and Self-Reported Symptoms

Perhaps the most common conditions for which insurance carriers will deny disability insurance benefits are those where the symptoms or the intensity of symptoms are subjective or not objectively measurable. For example, chronic back pain, neck pain, rheumatoid arthritis, and depression, are all conditions where the severity of the condition may be impossible to measure, other than with subjective statements from the patient, and verifiable evidence may simply be too difficult to obtain. Nonetheless, insurance companies may deny claims for a lack of verifiable evidence of the condition, capitalizing on the lack of objective evidence. In many cases, however, the terms of the insurance policy do not contain a provision that requires an insured to provide objective evidence of their disability. Thus, it is absolutely necessary for a claimant with a disabling condition where the symptoms are not objectively verifiable to understand the actual terms and provisions of their insurance contract.

Overcoming These Obstacles

The disability claim process has been designed by insurance companies to be overwhelming and exhausting. Insurers hope that by making the process difficult, many claimants will simply give up. Insurance companies know that most of those who don’t give up, will unknowingly succumb to the many tricks and traps that insurers have created to justify denying or terminating a claim. Insurers tactics are not insurmountable; however, the fight can be extremely difficult to take on alone, especially when the opponent is a billion-dollar industry devoted to reducing costs and denying claims.

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Why You Might Need The Services of An Insurance Claim Investigator

Many insurance companies today are fighting a battle against fraudulent claims for insurance. Almost every insurance company gets fraudulent claims sent into them. This is where the insurance claim investigator comes in and has to assess whether the claim is actually an honest legitimate claim or a fraudulent claim. Many insurance companies will have their own team of investigators in house dealing with all the claims that are possibly fraudulent, but there are also many companies that employ private investigation teams to carry out this type of work.

Sometimes it can be very clear to the insurance company that a claim that has been presented is actually fraudulent but there is no hard evidence of this and the claim can be very difficult to assess. Hard evidence of deception or lies has to be available for the company to actually reject a claim as fraudulent and refuse to pay out the claim. It can sometimes be a time consuming operation to gather all this evidence together and present it. Private investigators will then be bought in to help and be able to stand witness if needed.

Many of the investigators from private companies have a thorough knowledge and background in the security areas, such as ex-policemen and women people who have previously worked in intelligence. This gives them the experience and knowledge to work in a correct and discreet manner to uncover the claim investigation with evidence. By using a mixture of surveillance and intelligence work the true circumstances surrounding the claim can be uncovered.

There are many different types of insurance claim investigator, there is insurance claims for accidental damage to vehicle, insurance claims for household insurance, fire insurance and insurance for sickness. Whatever the type of claim insurance claim investigators will engage in the job of uncovering the truth about the claim and decide if the claim is in fact fraudulent by presenting evidence to the contrary.

Many people are aware that these fraudulent claims for insurance in many fields’ only leads to the insurance company losing money and then the insurance premiums have to be increased for everyone else who carries insurance for whatever reason. The cost per year of fraudulent claims to insurance companies is increased year on year so the need for insurance claim investigators is a must for most of the companies offering insurance cover. At a cost of around £4 million a day fraudulent claims to insurance companies have to be uncovered.

To the majority of people insurance is something that has to be taken out for their car and home or sickness and accident and mortgage cover; the majority do not need to claim. Unfortunately there is now a culture of people taking insurance cover out and blatantly making false claims. Insurance claims investigators have a difficult job to do to try and weed out the false claims, but with all the sophisticated surveillance equipment and the experience of the investigators many of the insurance claims are refused pay-out on the grounds of a fraudulent claim. The fact that many of the insurance claims investigators have a military to police background helps to get the best out of people being interviewed about the insurance claim and can soon gather evidence that the claim has been fraudulently made. If people did not make these inflated fraudulent claims to insurance companies’ everyday then the premiums for everyone would be much lower and affordable for all. It is an increasing problem for insurance companies and unfortunately has to be factored in to the price of all insurance premiums, not only the cost of the actual fraudulent claims, but also the cost of employing the insurance claims investigators.

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Insurance Appraisal Process – A Policyholder’s Best Chance to Resolve an Insurance Claim Dispute!

Many homeowners and business owners find themselves disagreeing with their insurance company’s analysis of their insurance claim. However, most are unaware that they can dispute the insurance company’s findings via the insurance appraisal process! Even though the policyholder (you) submits a contractor’s estimate, receipts for repairs or materials, or even photos showing damages that the insurance company did not include for repairs… they still won’t budge.

Most policyholders are unaware of how to dispute and resolve their claim with the insurance company. Policyholders have a choice and a voice within their policy for this very purpose. It’s called The Appraisal Clause – also know as The Appraisal Provision. Now, don’t let this scare you. It may seem like a fancy clause that would take a law degree to understand. However, a simple way to understand it is that it’s the insurance industry’s version of arbitration. Although similar, the Appraisal Process is NOT an arbitration or mediation and the umpire is not an arbitrator, mediator, or judge. Insurance Appraisal, Mediation, and Arbitration are separate things.

In short; Arbitration requires attorneys and a legal process, where Insurance Appraisal does not require attorneys or a legal process. Arbitration is a dispute between two parties for any reason, where as, the Insurance Appraisal Process is a dispute between the “value or cost,” to repair or replace property only – bee it an automobile, plane, train, couch, house, commercial building, etc.

Most Policies Have the Appraisal Clause

If you feel you’re at a dead end with your insurance company and want to resolve your claim you’ll need to check your policy for the Appraisal Clause. Most policies will have the provision listed under the “What to do after a loss,” section or the “Conditions” section of the policy. Below, you will find a sample of a typical Insurance Appraisal Clause included in most policies. Keep in mind that policies can be different in each state. Therefore, you should read your own policy to see if this clause exists. It will say something similar to the following ;

“APPRAISAL – If you and we fail to agree on the amount of loss, either one can demand that the amount of the loss be set by appraisal. If either makes a written demand for appraisal, each shall select a competent, independent appraiser. Each shall notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers shall then select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire. The appraisers shall then set the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any two of these three shall set the amount of the loss.”

OK, But How Does the Insurance Appraisal Process Work?
The Appraisal Process allows the policyholder (you) to hire an independent appraiser to determine the value of their damages. In turn, the insurance company will also hire their own independent appraiser. The two appraisers will then get together and select an umpire. The umpire is basically the arbitrator, or what you might call the judge. If a disagreement between the two appraisers arises, they can present their differences to the umpire who will make a ruling.

OK; so far so good, the basics of the insurance appraisal process are beginning to come together. We have an independent appraiser for the policyholder. We have an independent appraiser for the insurance company. Finally, there is an Umpire. These three individuals are known as The Appraisal Panel. The object of the Appraisal Panel is to set or determine The Amount of Loss. The Amount of Loss is the total dollar amount needed to return the damaged property back to its original condition, either by repair or replacement.

Once the Appraisal Panel is set, the policyholder’s chosen appraiser and the insurance company’s chosen appraiser will review the documents, estimates, and differences between them. The two independent appraisers will try to discuss and resolve the differences in damage and in cost. For example; the insurance company may determine that brick on a home does not need to be replaced. Where as, the contractor or appraiser for the policyholder says that it does have to be replaced. The two appraisers will discuss their reasons for their position and try to come to an agreement, first if it should be repaired or replaced, and secondly the cost to return the brick back to it’s original condition prior to the loss.

One benefit of the Insurance Appraisal Process is that the two independent appraisers have not been subject to the bickering and anger between the policyholder and the insurance company. Basically, it’s the hope that cooler heads will prevail. All the appraisers really have is the amount of the damage and the difference between the two estimate numbers. They do not have the previous baggage or anger that led up to the Appraisal. The process was designed so that these two individuals, who have no interest in the outcome, could discuss a settlement based on the facts presented to them.

Sometimes issues arrive where the two independent appraisers can’t agree on certain items. In this event, the two appraisers will submit their differences to the chosen umpire. The three will discuss the issues and try to reach an agreed settlement of the differences. As stated above; the settlement or final number is called The Amount of Loss. The final amount is known as the Appraisal Award. The Award is signed by the individuals who agree on The Amount of Loss. However, only TWO of the three individuals need to agree. (An agreement between the two independent appraisers, or the umpire and either appraiser) Once any TWO of the three individuals on the Appraisal Panel sign the award… the dispute is over! The amount on the Award binding and is paid by the insurance company, to the policyholder.

Can I Use An Insurance Attorney To Dispute My Claim?

The Appraisal Clause was initiated to lower the number of lawsuits filed against insurance companies. The courts found that many lawsuits were entering the legal system where the cost to repair or replaced damaged property was being disputed. In many cases the suites were being resolved when professional engineers and contractors could address the issues. The Appraisal Process was created to get such individuals together and keep these disputes out of the courtroom. Assuming you acquired an estimate of repair to your property for $100,000, from a contractor or insurance claims expert. Your insurance company has created an estimate for $30,000. This would be a clear dispute between the amounts of damage. This type of dispute is exactly what the Appraisal Clause was developed to resolve.

The clause allows parties on both sides of the insurance policy to dispute their differences using this less costly provision. Let’s face it; the courts are filled with lawsuits. The Insurance Appraisal Process allows for the dispute to be settled out of court. Using Insurance Attorneys and lawsuits can have insurance claims tied up in court for years. The Appraisal Provision was designed to keep these disputes out of court for a less costly and timelier resolution.

Insurance Claim Attorneys will usually represent policyholders for bad faith practices. Bad Faith is a whole other issue and sometimes happens after the Appraisal Process has been completed. Bad Faith claims are for much larger suites against insurance companies when it is alleged that they did not act with good faith of the policy they sold to the policyholder. In summary; disputes between the amount of damages and repairs will follow the Appraisal Process before entering into the legal system. Many Insurance Attorneys will also advise the policyholder to engage in the Appraisal Process before any lawsuits will begin.

How Do I know if the Insurance Appraisal Process is a Good Option for My Claim?

If the Appraisal Clause is in your policy then it is always an option. However, it’s wise to point out that Appraisal is usually an option when there is a substantial difference in the amount between the two estimate totals. For example; let’s say a fire completely destroys a house and the homeowner’s personal property within it (Know as the Contents). The differences between what the insurance company wants to pay and what you wish to receive is $5,000. In this situation, the Appraisal Process is not the best idea. After paying the fees involved for the appraisal, you may not end up with much of the $5,000 being disputed.

Now, if we take the same fire that destroys the property and the dispute between the policyholder and the insurance company is $40,000, appraisal should be considered. The policyholder now has a chance to recover substantially more money than originally offered.

Also, the Appraisal Clause is only applicable if a dispute arises from a covered loss. If the insurance company denied the claim as something not covered then this is not a dispute on the amount to repair, but rather a dispute on coverage. For example; homeowners and business policies due not cover floods. Flood policies are purchased separately. So, if there is no coverage for the flood damages then the Appraisal Process is not an option.

Simply put, the Insurance Appraisal Process is to determine the “amount of loss,” to property only. The Appraisal Panel is not to determine coverage, policy provisions, deductibles, how much was previously paid on the claim, etc. Let’s say there was an appraisal for a grand piano that fell off a delivery truck on the highway. The Appraisal Panel’s job is not to determine who’s at fault, the policy coverage limit, if the truck had a registration, or anything other than “How Much is the Piano Worth.”

As with our example earlier, if the insurance company offers a settlement of $10,000 to repair a roof and the policyholder has contractor bids for $15,000, then the Appraisal Process may not be the best option. The Appraisal Process may cost more than the $5,000 that’s being disputed. Unfortunately, the differences in repair/replacement costs are usually much greater. When an insurance company generates an estimate for a claim of $75,000 and the policyholder has acquired professional bids several contractors of $200,000 or more, its time to invoke the appraisal clause.

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