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Appraisal Clause & Dispute Resolution

When parties cannot reach an agreement on the amount of loss during a claim settlement, DEKRA can help. Our Alternative Dispute Resolution (ADR) specialists determine the value of personal property and deliver independent, unbiased reports.

Invoking the Appraisal Clause

During a claim settlement, there may be a disagreement between the insurance company, insured, and claimant on the amount of loss or the scope of damages. If this occurs, all parties have the option of invoking the appraisal clause, and each party hires an independent ADR specialist to mitigate the loss.
DEKRA’s appraisal specialists utilize years of experience to develop credible, independent estimates of personal property value. Each detailed appraisal report describes the methods used to determine market value, and complies with the Uniform Standards of Professional Appraisal Practice reporting requirements.

Diminished Value Settlement

After an accident, a diminished value claim seeks to quantify the loss of value to a car, before or after repairs.
Types of Diminished Value:
  • Inherent Diminished Value – This common type of loss occurs after a vehicle has been repaired to pre-accident condition. However, despite the current condition of the car, the market value is reduced based on accident history.
  • Immediate Diminished Value – This loss of value immediately follows an accident, before the vehicle is repaired.
  • Repair-Related Diminished Value – Low quality repairs reduce the vehicle value because it has not been restored to pre-accident condition.
Our ADR specialists utilize years of experience and trusted industry methodology to determine the value of the vehicle and develop a report that you can trust.

Repair Dispute

When vehicle repairs are required after an accident, the insurance policy outlines the steps required to place a claim, as well as resolve any claim-related dispute. If any party is unsatisfied after exhausting the steps outlined, it may hire an independent ADR specialist to resolve the repair dispute. Our experts review the case and provide an unbiased report detailing the necessary repairs and costs.

Total Loss Settlement

A total loss occurs when a vehicle cannot be repaired or when the cost of repair is more than the vehicle’s value. If the insurer, insured, and claimant are unable to agree on an actual value, each party may hire an independent expert. Our skilled appraisers will determine actual cash value by considering recent sales of similar vehicles in the area, vehicle mileage, features, and any prior damage prior to the loss.

Umpire & Arbitration Services

DEKRA can also serve as an arbitration specialist, reviewing relevant information from each party’s appraiser or dispute specialist to provide an unbiased final opinion of value.