What is the role of an insurance appraisal?

An insurance appraisal is an important tool used in insurance law in Minnesota. It is a process in which two independent appraisers, one hired by the insurance company and another selected by the insured party, are used to determine the value of a property in a fair and impartial manner. The insurance appraisal is typically used when a property is damaged or destroyed by an insured risk or peril, such as fire, hail, flood, earthquake, hurricane, theft, and the like. During an appraisal, the two independent appraisers will examine the damaged property, consider the local market conditions, and use other techniques to determine its value. The appraisers will then create an appraisal report which will include their opinions of both the actual cash value of the property and the cost of replacement. This report can be used by the insurance company and insured party to determine the amount of compensation that is due. In Minnesota, it is important for insured parties to be aware of the law regarding insurance appraisals; insurance companies must abide by strict regulations and procedures when conducting an appraisal. Furthermore, an insured party is allowed to contest an appraisal if they disagree with the appraisers’ assessment. Therefore, it is important that insured parties understand the law and the appraisal process, and know how to protect their rights when dealing with insurance companies.

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What is the role of an insurance appraisal?

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