How the Appraisal Clause Helped a Colorado Springs Driver Get Fair Compensation After a Hailstorm
Jul 24, 2025
When a major hailstorm hit Colorado Springs, many drivers were left with damaged vehicles. Among them was Sarah Jensen, whose 2019 Subaru Outback suffered significant dents on the roof, hood, and trunk.
Like most policyholders, she expected her comprehensive insurance claim to be handled fairly and quickly.
But what happened next shows why every car owner should know about the Appraisal Clause in their insurance policy.
The Initial Lowball Insurance Offer
Just three days after filing her claim, Sarah received an email from her insurance company with a settlement offer of $5,200.
The insurer’s number was based on a virtual adjuster review and what they called “market average repair rates.”
At first glance, Sarah thought this seemed reasonable - until she took her vehicle to a reputable auto body shop in Colorado Springs.
The shop manager reviewed the damage and raised an eyebrow at the insurer’s figure.
“$5,200? This is closer to a $9,000 repair. The roof replacement alone is about $3,000,” he explained.
That was Sarah’s first clue that the insurer’s estimate was far below the true cost of repairs.
Challenging the Estimate
Sarah immediately called her claims adjuster to dispute the offer.
“I’m looking at an estimate almost double what you offered,” she said.
The adjuster didn’t budge. Instead, he explained:
“Our estimate stands unless you provide significant justification.”
“You could go through the Appraisal Clause, but it’s a complicated process.”
When Sarah asked what made it so complicated, the adjuster described it in a way that sounded discouraging:
She would need to hire an independent appraiser.
The insurance company would hire their own appraiser.
If they couldn’t agree, an umpire would step in to make the final decision.
The process could take weeks or months.
Sarah quickly realized something important - insurance companies don’t want policyholders to use the Appraisal Clause.
How the Appraisal Clause Worked in Her Favor
Despite the insurer’s attempt to downplay the process, Sarah decided to move forward. She hired a local appraiser experienced in insurance disputes.
Here’s what happened:
Her independent appraiser reviewed the hail damage thoroughly.
The insurance company hired their own appraiser.
Within just two weeks, both appraisers agreed that the fair repair cost was $8,600.
The insurer quietly issued payment for the updated amount—without further delays or arbitration.
Sarah didn’t just accept the lowball offer. She exercised her rights, and it paid off.
Why the Appraisal Clause Matters
The Appraisal Clause is one of the most powerful yet least discussed policyholder protections in auto insurance.
It exists to resolve disputes when the insurer and the policyholder disagree on the amount of loss.
Here’s why it matters:
Protects you from unfair valuations – Insurers often use software or “market averages” that underestimate real repair costs.
Levels the playing field – You’re not stuck accepting the insurer’s number; you can bring in your own expert.
Often faster than lawsuits – Most appraisal cases are resolved within weeks, not years.
Forces fairness – When two independent appraisers review the damage, the outcome is usually closer to reality.
Key Takeaways for Policyholders
Sarah’s story is a reminder that insurance companies may not volunteer all your rights. They may even try to discourage you from using tools like the Appraisal Clause.
But here’s the truth:
If your insurer’s estimate seems too low, always get a second opinion from a reputable repair shop.
If there’s a big difference between the insurer’s estimate and the real repair costs, consider invoking the Appraisal Clause.
Don’t be intimidated - hiring an independent appraiser is often worth it, especially for major damages like hailstorms, frame damage, or total losses.
Final Word
Sarah Jensen’s experience proves that the Appraisal Clause can protect you from being underpaid on your insurance claim.
Insurance companies won’t advertise this option, and they may even make it sound complicated. But when the numbers don’t add up, the Appraisal Clause is your strongest tool to ensure you receive fair compensation for your vehicle’s damage.
Moral of the story: Don’t settle for less than you deserve. Know your rights, get independent help, and use the Appraisal Clause when necessary.