Is proof of loss required before an appraisal?

Coverage Q&A: Insurers are asking for proof of loss for property damage before proceeding with an appraisal.

Insurers are requiring the insured to submit proof of loss before the appraisal. (Photo: Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: This week’s question is a classic ‘what comes first’ scenario involving proof of loss and appraisal.

Question: Several insurers are requiring a proof of loss submission before allowing an appraisal to proceed for our insured. We have yet to find any policy term or condition that would stipulate that the proof of loss is a conditions precedent that would delay the appraisal process.

We agree that the insured has a duty to submit a proof of loss within 60 days of it being required, but that condition stands alone and has no bearing on the appraisal process. What are your thoughts?

— Colorado Subscriber

Analysis: Virtually every policy requires proof of loss from the insured when a property is damaged. Most policies also contain provisions for an appraisal when the insured and the insurer do not agree on the claim’s value. But can an insurer require an insured to submit a proof of loss before the insured requests an appraisal of the claim?

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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