LEGALLY SPEAKING
www.mrca.org  —  Midwest Roofer
12
Introduction
Property and Casualty (P&C) 
insurance provides essential 
protection against unforeseen 
property damages. However, 
disputes between policyholders 
and insurance companies over the cost and scope 
of damages can arise, leading to frustration and 
financial strain. In such cases, appraisal can serve 
as a vital tool for resolution. Yet, in recommending 
appraisal to policyholders, roofing contractors play a 
pivotal role in identifying and repairing damages. This 
underscores the importance of advising policyholders 
to seek legal counsel before initiating the appraisal 
process, aiming to shield roofing contractors from 
liability and safeguard policyholders from potential 
loss of essential remedies against insurers.
Appraisal Process and its Importance
One of the critical aspects of appraisal is its 
binding nature. Once the appraisal award is issued, 
it is usually considered final and legally binding, 
barring any exceptional circumstances. However, 
the insurance company still reserves its right to deny 
coverage and can refuse to pay the award. Therefore, 
policyholders must grasp the implications of pursuing 
this path, especially in states with intricate case law 
on the matter. Additionally, policyholders bear the 
costs of their appraiser and half of the umpire fee, if 
required, which can exacerbate financial strain. More 
importantly, these costs are typically not recoverable 
from the insurance company. 
Roofing contractors often act as the initial point of 
contact for policyholders dealing with storm damages, 
relying on their expertise in damage assessment 
and cost estimation. Consequently, policyholders 
frequently lean on their guidance during the insurance 
claims process. While recommending appraisal may 
seem straightforward, roofing contractors must 
exercise caution. Notably, appraisal determines the 
total loss amount, not solely roof damages. Failure 
to fully identify damages before appraisal may result 
in their omission. Moreover, roof damage disputes 
during appraisal are common due to assessment 
complexities, differing opinions on repair versus 
replacement, and disagreement over damage 
extent. Insurers may aim to minimize payouts, while 
policyholders advocate for comprehensive coverage. 
By: Michelle C. Le, Law Offices of Michelle C. Le, PLLC
NAVIGATING 
APPRAISAL
THE COST, RISKS, AND ROLE 
OF LEGAL CONSULTATION

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