If the insured and insurer disagree on the crop insurance loss amount, how is the claim settled?

When there is a disagreement between the insured and the insurer regarding the amount of a crop insurance loss, the claim is typically settled through an appraisal process. This involves a systematic evaluation of the loss, where both parties may select an appraiser to objectively assess the situation. If the appraisers do not agree on the loss amount, a third appraiser, usually referred to as an umpire, may be involved to help reach a decision.

The appraisal process is specifically designed for resolving disputes over loss valuations in crop insurance scenarios. It focuses on an independent assessment rather than legal proceedings or negotiation tactics. While options like negotiation and mediation may also seem viable, they often do not provide the formal resolution necessary for a precise valuation of losses in crop insurance claims.

Court proceedings are generally more time-consuming and costly and are typically considered a last resort compared to appraisal, which is designed to be a faster and more efficient method for conflict resolution regarding loss amounts. Therefore, opting for an appraisal ensures a structured approach to settling disputes centered on objective loss evaluation.