Appraisal companies typically offer Insurance Replacement Cost Evaluations to determine the correct amount of coverage, whether the policy is based upon Actual Cash Value or Replacement Cost.
Appraisers appraising for Actual Cash Value, begin with estimating the Replacement Cost New and reduce this amount by the accrued depreciation. In either case, it is important that the appraiser have a clear understanding of Insurance Replacement Cost Evaluations.
One way for policyholders to dispute their insurance company’s offer is to invoke the appraisal clause within the insurance policy. When conducted properly, appraisal can be a very effective alternative dispute resolution process. However, you should know that not all insurance policies contain an appraisal clause.
An Insurance Appraisal commonly known as a Replacement Cost Appraisal is the estimated cost to replace the existing building (including services, mechanical & electrical equipment, and siteworks) using new materials and current standards of construction, with a building (including services, mechanical & electrical equipment, and siteworks) of the same configuration and utility as existed just prior to an insurable loss.
If you have questions about mediation and want to understand your options, give us a call at (773) 219-5465 or contact us. We will be glad to discuss this process with you or refer you to competent legal counsel for any legal questions you may have.
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