Why carriers might invoke appraisal first
- Lock in their current low offer as the floor
- Prevent policyholder from supplementing with new documentation
- Force resolution before CRN filing
- Stop interest accrual (some policies suspend during appraisal)
- Avoid a larger potential litigation exposure
Why this is disadvantageous
Scope freeze
- Scope as-submitted becomes the baseline
- Supplemental adds difficult mid-appraisal
- Hidden damage not yet discovered is outside the panel's mandate
Panel selection pressure
- Policyholder rushed to select appraiser
- Less time to vet qualifications
- May not have access to specialty expertise
Documentation gap
- Expert reports not yet secured
- Forensic analysis incomplete
- Matching-statute research not finalized
Your response to carrier-invoked appraisal
Don't rush
- Take the full statutory period to respond
- Select a qualified appraiser deliberately
Complete documentation
- File supplemental scope before panel forms if possible
- Retain expert engineers, contractors as needed
- Assemble full claim file for panel
Ensure favorable scope
- Invoke matching statute explicitly
- Document code upgrades
- Include all resulting/ensuing damages
Reserve right to additional damages
- Appraisal sets amount of loss, not coverage determinations
- Bad-faith damages separate from appraisal
- Reserve these rights in writing
When to resist
- If coverage is still disputed (appraisal doesn't decide coverage)
- If scope documentation is incomplete
- If panel qualifications are inadequate
- If CRN is warranted independently