How does the appraisal process work, and when can a party demand it?

Some policies contain an appraisal process for disputes about the amount of loss. The clause may set out how appraisers are selected, when an umpire is involved, and how costs are allocated. Appraisal is not a universal solution for coverage disputes; its scope depends on the policy and applicable law.

What appraisal usually cannot decide is coverage itself, whether the loss is covered at all, and that boundary is where most appraisal litigation happens. Carriers sometimes invoke it to delay; policyholders sometimes invoke it to escape a lowball adjustment.

Watch the deadlines. Some policies require appraisal to be demanded within a set period, and some states require the demand in writing.

Rules differ by state and by policy wording. Use the searches below to read what courts in your own state have said, then check that a case is still good law before relying on it.

What to gather

The complete appraisal clause and all relevant endorsements.
Both estimates and a written list of the disputed items.
Correspondence identifying whether the disagreement concerns price, scope, cause, or coverage.
Any proposed appraiser or umpire terms, fees, and disclosures.

A practical example

One dispute may concern the quantity of drywall to replace, while another concerns whether water damage is covered at all. List them separately. Ask a qualified professional which issues the appraisal process can address in your circumstances.

How to review the issue

Before sending a demand or agreeing to terms, review the clause, possible costs, deadlines, and effect of an award. Do not assume appraisal pauses a lawsuit deadline or requires the insurer to cover an excluded loss.

Using a case-law search responsibly

The searches below are starting points, not verified legal advice. Read the actual opinion, identify the court and jurisdiction, compare the policy language and facts, and check later treatment before relying on it. A search result or software suggestion does not establish that a case governs your claim.

You can use this checklist without buying software. For help locating a regulator or legal aid, visit our free resource directory. For software cost assistance, contact us about free access.

Search the case law

Appraisal clause disputesOpens a free search at CourtListener Umpire selectionOpens a free search at CourtListener Appraisal versus coverageOpens a free search at CourtListener

Searches run on CourtListener, a free public database of U.S. court opinions from the Free Law Project. Add your state's court in their filters to narrow the results.

Building a claim that turns on appraisal and umpire?

PAi Claims builds an itemized estimate from your own photos, policy and measurements, on your computer, with every line traced to its source. Brought to you by a 501(c)(3); the first claim is $20.