Insurance Disputes Attorney in Oakdale, Minnesota

What is an Insurance Appraisal?

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An insurance appraisal is almost like a mini arbitration. Its, typically, it’s included in the language of the insurance policy and there’s some laws in Minnesota that say that certain types of policy has to have an appraisal clause. When there’s a dispute over the value of a claim meaning the amount of damage that has happened because of a fire or a windstorm or something along those lines and the insurance company and the insured can’t agree on what the dollar amount is either side can call for this appraisal process. It’s like an arbitration where each side selects a neutral appraiser and then the two appraisers select a neutral umpire and those three people make up the panel. They then hear evidence typically at the site of the loss or at the home or the farm or the building where the loss has occurred. They hear evidence and then they deliberate upon it and then they issue an award. Typically, that award, that dollar amount award is going to be binding on both of the parties and the insurance company has to pay if there’s my awarded of no money awarded then the insured basically is left without a recovery. So it’s a binding process very similar to an arbitration with some limitations, it’s not quite the same as arbitration but very similar. But that is how a lot of damage disputes in Minnesota are resolved especially as of late.

Oakdale, MN insurance coverage attorney, Adina Bergstrom, discusses an insurance appraisal.

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