for parties resolving hurricane claims through appraisal
Wind Insurance Policy Appraisal Process
The appraisal process for resolving insurance claims for damage caused by the peril of wind is not as restrictive as the appraisal process for resolving claims for damage caused by flooding.
Policy language found in appraisal provisions can vary from insurance company to insurance company. In fact, some insurance companies have completely removed the appraisal provision from their policies. It is important to always read the insurance policy when considering appraisal to resolve an amount of loss issue in an insurance claim.
The typical text of the appraisal provision could read as follows:
E. Appraisal
If we and you disagree on the amount of loss, either may:
Demand an appraisal of the loss. In this event, each party will choose a competent appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will separately set the amount of the loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of the loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of the loss.
Each party will:
- Pay its chosen appraiser; and
- Bear the other expenses of the appraisal and umpire equally.
FEMA News Photos
The majority of damage caused by Super Storm Sandy resulted from the severe flooding. However, there are also thousands of disputed property insurance claims for wind damage caused by Super Storm Sandy.
Standard Insurance Policy Forms
- Homeowners Special Form (HO3)
- Renters Policy (HO4)
- Condo Unit Owners Form (HO6)
- Wind Only Policy Form
The above are samples of typical policy forms. Since policy language varies from company to company you should refer to the policy issued by your insurance company.
