An appraisal can help resolve a disagreement about the amount of a property loss. VERILUX representatives bring practical property-loss experience as independent appraisers or neutral umpires. Learn how the process works, what each role involves, and how appointments are billed below.

MCL 500.2833(1)(m) states, in pertinent part:

“ (1) Each fire insurance policy issued or delivered in this state shall contain the following provisions:

 (m) That if the insured and insurer fail to agree on the actual cash value or amount of the loss, either party may make a written demand that the amount of the loss or the actual cash value be set by appraisal. If either makes a written demand for appraisal, each party shall select a competent, independent appraiser and notify the other of the appraiser's identity within 20 days after receipt of the written demand. The 2 appraisers shall then select a competent, impartial umpire. If the 2 appraisers are unable to agree upon an umpire within 15 days, the insured or insurer may ask a judge of the circuit court for the county in which the loss occurred or in which the property is located to select an umpire. The appraisers shall then set the amount of the loss and actual cash value as to each item. If the appraisers submit a written report of an agreement to the insurer, the amount agreed upon shall be the amount of the loss. If the appraisers fail to agree within a reasonable time, they shall submit their differences to the umpire. Written agreement signed by any 2 of these 3 shall set the amount of the loss. Each appraiser shall be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire shall be paid equally by the insured and the insurer.”

What Is An Appraiser?

An appraiser is an individual selected by a party to assist in resolving disagreements regarding the amount of loss under an applicable property insurance policy. Within Michigan's statutory appraisal process, an appraiser's responsibility is to independently evaluate the amount of loss and, where applicable, the actual cash value of the property submitted to appraisal.

VERILUX representatives may serve as independent party-appointed appraisers where appropriate.

What Is An Umpire?

An umpire is an impartial individual selected by the appointed appraisers, or otherwise appointed in accordance with the applicable appraisal provisions, to assist in resolving disagreements that arise during the appraisal process.

The umpire considers the appraisers’ differences as an impartial decision-maker.

VERILUX representatives may serve as neutral umpires where appropriate.

As referenced within the language of the statute, the costs of an umpire are shared by the insurer and the insured.

How Do You Charge for Appraisal Services?

VERILUX does not charge contingency-based fees for appraisal services.

Appraisal services are generally billed on a time and expense basis. Upon request, VERILUX may provide a preliminary estimate based upon the nature and complexity of the assignment; however, the final invoice reflects the actual time devoted to the appraisal, together with reasonable travel, mileage, and other necessary expenses incurred in performing the appointment.

Every appraisal assignment is unique. Factors such as the size of the loss, the complexity of the issues presented, travel requirements, inspections, meetings, and the volume of information requiring review may all influence the time necessary to complete the appraisal process.