Can Appraisal be Rejected if There is a Dispute Over the Scope of Loss?

Originally published by Kenneth Kan.

In my previous blog, I discussed the proper grounds by which an appraisal award can be vacated in California. This week, I am going deeper in the appraisal process. In particular, can a disagreement or dispute over the scope of loss be resolved by appraisal?
I’ve heard of instances where an insurance company would reject appraisal when invoked by the insured citing a dispute over the scope of loss as the reason. First, what is a scope of loss? United Policyholders, a non-profit organization that is a resource to consumers, offers the following helpful definition:

A scope of loss is a document or a set of documents and measurements that describe the amount and type of damage that has been done to a structure, plus the quantity and quality of materials and the current cost of those materials and labor that will be needed to repair or rebuild that structure.1

Typically, if an insurance claim for property damage is adjusted properly, both the insurer and insured will agree to a scope…

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