A recent commercial roof damage claim illustrates just how powerful the appraisal process can be in avoiding costly litigation. Here’s how it unfolded—and how a neutral appraisal saved both parties time and money.

A large commercial property owner filed a claim for hail damage to a multi-tenant building. The insurer offered $175,000. The insured’s contractor estimated repairs at over $475,000. Tensions rose quickly.

The disagreement centered on the scope of roof replacement vs. repair, along with code upgrade considerations. Both parties retained legal counsel, and litigation seemed imminent.

The attorneys agreed to invoke appraisal and selected experienced appraisers. A qualified, neutral umpire was also agreed upon. Site inspections were conducted, documents exchanged, and within 21 days, the panel reached a fair award of $298,000.

Appraisal resolved the dispute without depositions, court filings, or years of delay. Both parties accepted the outcome, and the policyholder avoided litigation costs exceeding $75,000. This case is a testament to the power of timely, well-executed appraisal.

This case study highlights the immense value of the appraisal process in resolving complex insurance disputes efficiently and equitably. By choosing appraisal over litigation, both parties avoided prolonged legal battles, excessive costs, and unnecessary stress. The outcome demonstrates that with qualified professionals and a commitment to resolution, appraisal can be a powerful tool to achieve fair settlements—quickly and cost-effectively. For insurers and policyholders alike, it’s a reminder that collaboration and expertise often lead to the best results.

Disclaimer: This case study is fictional and provided for illustrative purposes only. It is not based on any specific client file or legal case, but reflects common scenarios encountered in insurance appraisal work.