The umbrella, ACV, DV, and Cost of Repair
Right to Appraisal
Nearly every auto insurance policy contains an appraisal clause, a contractual right that lets either party demand an independent appraisal when the value of a loss is in dispute. Modern Appraisers handles every type of appraisal that can be invoked under the clause: Actual Cash Value, Diminished Value, and Cost of Repair.
What the appraisal clause actually says
The exact language varies by carrier, but nearly every US auto policy includes something close to:
If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding.
Three key points: either party can invoke; each side selects its own appraiser (at its own expense); and the determination is binding when any two of the three agree.
How the process works
Typical appraisal clause proceeding runs 4 to 8 weeks from demand to binding determination.
Appraisal demanded
Either party sends a written appraisal demand under the policy. Each side has (typically) 20 days to name its appraiser.
Costs: each party pays its own appraiser; umpire costs are split 50/50.
Two appraisers work independently
Each appraiser inspects the vehicle, pulls comparables, documents adjustments, and produces an independent valuation. Appraisers then meet (or exchange reports) to see if they can agree. Many disputes resolve here without an umpire.
Umpire breaks the tie
If the two appraisers can't agree within a reasonable range, they jointly select an umpire. The umpire reviews both reports (and may inspect the vehicle), then issues a binding determination. Any two of the three must agree.
When the clause applies
The appraisal clause covers valuation disputes, disagreements about how much is owed, not whether coverage applies. Three main categories:
Actual Cash Value (ACV)
The most common appraisal-clause invocation. Applies to every total-loss settlement in essentially every US auto policy. If the carrier's valuation and your position differ by more than 5 to 10%, appraisal clause is often faster and cheaper than litigation.
Available in all 50 states, every standard auto policy includes it for total-loss ACV.
Diminished Value (DV)
First-party DV (your own carrier) is only compensable in Georgia and Virginia, and in those states, the appraisal clause typically applies. Third-party DV (against the at-fault carrier) is allowed in 49 states but goes to settlement negotiation or litigation, not appraisal clause.
First-party appraisal clause: GA, VA. Third-party DV: 49 states but typically litigated.
Cost of Repair
Not every policy includes an appraisal clause for repair-cost disputes. Massachusetts explicitly mandates it (MGL c. 175 §110L). Many homeowners and specialty auto policies include it. Standard auto policies in most states do not, the clause is usually ACV-only. Confirm in your policy before invoking.
Massachusetts: statutory. Other states: policy-dependent. Confirm clause availability before engaging.
Three types of appraisal, one firm
What our appraisal report delivers
Line-by-line comparables
Each comparable vehicle identified by VIN, listing source, date, mileage, trim, options. No proprietary black-box algorithm, every number is traceable to a source document.
Transparent adjustments
Mileage, condition, trim, options, regional market, each adjustment is a separate line with its reasoning stated. Umpires expect this format.
Jurisdiction-appropriate methodology
California requires fair-market-value, Georgia DV uses 17c or market-based depending on who's appraising, Massachusetts has explicit repair-cost framework. We apply the right methodology for the state and policy.
Umpire-ready formatting
If the two appraisers can't agree, the umpire reviews both reports. Reports that read cleanly, cite sources, and show the math win more umpire decisions than reports that stop at a bottom-line number.
Available either side
We serve carriers, vehicle owners, attorneys, and claims professionals, the methodology doesn't change based on who retains us. The appraisal-clause process depends on that neutrality.
Clause invoked on your claim?
Submit the claim online and we'll follow up within one business day with next steps and a fee quote.