Restoration practitioners often encounter situations where there are significant differences in opinion between their repair estimates or invoices and those of insurance companies. This often leads to repair activities having to stop until an agreed scope and cost can be reached. This extends displacement of the insured, business interruption, mechanics’ liens, as well as adding costs for storing personal property and a wide range of other problems. 

Most property insurance policies contain specific language designed to help resolve disputes between the insured and the insurer. This is known as the appraisal clause. This clause was written into insurance policies over a century ago and was created to provide a mechanism where the insured and insurer can resolve their differences regarding the value of the loss without having to go through a lawsuit.