When Should Contractors Trigger Restoration Insurance Appraisals?

Appraisals are becoming a bigger part of the restoration world. More contractors are looking for ways to resolve payment disputes without lawsuits or long fights with adjusters. The appraisal process gives contractors and policyholders a way to get a fair, independent review of the value of the loss. This can be a powerful tool, but only when it is used in the right situations.

The real challenge is knowing when to trigger an appraisal. Some jobs are clear fits. Others are not worth the cost or effort. Many contractors feel stuck. They do not want to leave money on the table, but they also do not want to spend more time and money on a restoration insurance appraisal than the job is worth. 

At One Claim Solution, we’ve been a part of hundreds of different restoration claims appraisal processes, so we understand the benefits and challenges the process can bring. One of the trickiest parts of appraisals is deciding when they are worth it. Today, we will walk through some practical tipping points to help contractors better judge when initiating a restoration appraisal is the right move.

Understanding the Real Purpose of Restoration Insurance Appraisals

Insurance appraisal exists for one main reason. It gives both sides a way to settle a dispute about the value of a water damage or other property damage loss. The key word is value. Appraisal does not decide coverage. It does not decide who is right about liability. It exists to put a fair number on the work that was done or needs to be done.

Restoration insurance appraisals should only be triggered when there is a significant disagreement or a clear impasse has been reached. At this point, the adjuster is not moving. The contractor cannot justify accepting the low number. The homeowner may be caught in the middle. Appraisal offers a neutral way forward. It brings in independent appraisers who can study the facts and decide on a fair value.

Tipping Points to Consider

The Size of the Balance

The biggest factor in deciding whether to trigger a restoration insurance appraisal is simple. There must be enough money on the line to justify the cost. Unlike litigation, each party pays for their own appraiser and half of the umpire. These fees can add up. Appraisers often charge several hundred to several thousand dollars. Umpire fees can be similar. Even when the contractor finds someone willing to work on a flat rate, the contractor must know the full cost up front before moving forward.

This means you need a balance big enough to make the process worthwhile. If a contractor is missing a few hundred dollars, an appraisal will not help. If the dispute is several thousand dollars or more, an appraisal may be worth it. 

The question to ask is simple: Will the expected gain outweigh the cost of the process? Many contractors find that the answer is yes on larger losses, especially when the adjuster’s number is clearly unreasonable.

Documented Work That Can Stand Up to Review

Insurance appraisals are not based on opinions. They are based on documentation. Once you trigger an appraisal, your job file becomes the foundation of your case. The independent appraisers cannot review work that is not documented. They cannot guess what you did or why you did it. They look at facts, photos, readings, logs, and notes.

Appraisers will pick apart a job file, studying the photos and paperwork line by line. They will examine every part of the scope. The only record is what the contractor documented. This leads to the next key question. Is your job file strong enough to support your number? If the answer is yes, appraisal can help bring accountability. If documentation is weak, an appraisal may do more harm than good. Appraisers will often land closer to the carrier if the contractor cannot support their scope.

A Restoration Claims Adjuster Who Will Not Move

Not every disagreement needs appraisal. Many claims resolve with normal back and forth. Adjusters may push back at first, then raise their offer once you explain the job. But when the adjuster stops responding, refuses to budge, or keeps giving unreasonable explanations, you may have reached the true impasse.

Some examples of adjuster impasses that might benefit from initiating an appraisal include:

• The adjuster is ignoring clear documentation.
• The adjuster refuses to consider scope items that are standard practice.
• The adjuster claims it is a coverage issue when it is clearly a value issue.
• The carrier delays the process and refuses to move even after more proof is given.

When the discussion becomes a dead end, appraisal becomes the next step.

Restoration Contractor Confidence

Ultimately, contractors should not trigger an appraisal unless they are ready to stand behind their work. Independent people will be reviewing the restoration job. That means contractors who want to trigger a restoration insurance appraisal need confidence in their scope, their documentation, and the quality of their work. A contractor who knows their file is messy or incomplete may need to fix their internal processes before going down this path.

The Homeowner Relationship

Restoration contractors often ask whether they should be the one to trigger the appraisal. The answer depends on the state and on the assignment of benefits rules. Some states allow contractors to demand an appraisal directly. Some do not. Some carriers fight the right, even when it exists.

In any case, contractors should remember that homeowners play a key role. Many do not know they even have the right to ask for an appraisal. Contractors who take time to explain the process and show confidence in their work often see strong support from the homeowner. This cooperation can be the final tipping point that makes appraisal possible.

Coming to a Decision

Appraisal is not the answer for every claim, but it is a strong tool for the right claims. Contractors can make the right call by looking at the size of the balance, the strength of their documentation, the behavior of the adjuster, their confidence in the work, and the support they have from the homeowner. When these tipping points line up, appraisal creates a path toward fair payment without going straight into litigation. Contractors gain a way to challenge unreasonable offers and bring accountability to the process.

Take Advantage of One Claim’s Experience with Restoration Insurance Appraisals

At One Claim Solution, we have experience handling hundreds of different insurance appraisals. We’re familiar with what it takes to have the best chance of getting the results you want out of the process. Because managing and negotiating restoration claims is what we do, we have the skills it takes to get you the best payouts possible. Reach out to One Claim Solution today to see how we can help you increase your claims success.