In Illinois, if the full amount of appraised loss under a fire and extended coverage policy remains unpaid, who is responsible for paying the appraisal fees?

In Illinois, when it comes to the payment of appraisal fees, the responsibility lies with the insurer when the full amount of the appraised loss under a fire and extended coverage policy is unpaid. This is based on the premise that the appraisal process is part of the claims settlement process that the insurance company is obligated to financially support. The insurer engages in the appraisal to resolve disputes regarding the amount of loss, and thus it is appropriate for them to cover the associated costs.

In cases where the insurer has not settled the claim and the appraisal is necessary to establish the amount owed to the insured, the insurer’s payment of these fees reflects their obligation to fulfill the terms of the policy. This ensures that the insured is not burdened with additional costs while attempting to receive the benefits they are entitled to under their insurance coverage.

Other parties, such as the insured or the public adjuster, typically do not bear responsibility for the appraisal fees in this context because the appraisal process is designed to determine the insurer's liability, not to impose costs on the insured. The appraisal company is merely acting in a professional capacity to evaluate the loss and does not assume financial responsibility for the expenses incurred in the process.