Why carriers invoke appraisal
Carriers use appraisal strategically when:
- They want to lock in their current offer as the floor
- They want to prevent supplemental scope discovery
- They want to force resolution before CRN timing
- They want to avoid larger litigation exposure
- They want to avoid pay-interest-during-claim timing
Why this disadvantages you
Scope freeze
Once appraisal is invoked, the scope as-documented becomes the basis. Adding scope mid-panel is difficult. Hidden damage not yet discovered is outside the panel's mandate.
Rushed panel selection
You have 20 days to name your appraiser. Less time to vet, less time to find specialty expertise, more pressure to accept what's suggested.
Documentation gap
Expert reports not yet secured, forensic analysis incomplete, matching-statute analysis unfinished: all locked in at current state.
Panel-selection dynamics
Carriers work with appraisal panels regularly. They know which appraisers lean which way. On your first appraisal, you may not.
Your response playbook
Don't rush
- Take your full statutory period to respond
- Select a qualified appraiser deliberately
- Don't accept the first appraiser suggested by the carrier's consultant
Complete documentation first
- Document every scope item before the panel forms
- Engage experts (engineers, contractors) as needed
- Invoke matching-statute analysis explicitly
- Document code-upgrade scope
Ensure favorable scope
- File supplementals before the panel finalizes scope
- Include all resulting/ensuing damages
- Include ALE if applicable
- Include contents if applicable
Preserve escalation rights
- Appraisal decides amount of loss, not coverage
- Preserve bad-faith claims in writing
- Don't sign release that includes non-appraisal damages
When to resist the invocation
- Coverage is still contested (appraisal only decides amount)
- Scope documentation is genuinely incomplete
- CRN is warranted independently
- Panel qualifications are inadequate
Response options:
- Request supplemental resolution before appraisal
- File CRN in parallel with appraisal response
- Object to premature invocation if policy supports
How Ocean Point handles carrier-invoked appraisal
- Immediate scope audit of the claim file
- Expert retention as needed
- Panel-member vetting
- Matching-statute documentation
- Strategic timing of any CRN or supplemental
- Aggressive panel advocacy