The appraisal clause is usually just one paragraph tucked into the conditions section of a property insurance policy, but it can meaningfully affect how a disputed claim gets resolved. Knowing what to look for in that language can help a policyholder understand their options before a disagreement ever comes up.
Start by locating the clause itself, often labeled “Appraisal” within the “Conditions” or “Loss Conditions” section of the policy. Some policies place it near other dispute related provisions, so it can help to scan the full conditions section rather than assuming it will be in one particular place.
Look at what triggers the clause. Most appraisal clauses apply specifically to disagreements over the dollar amount of a covered loss, not to whether coverage exists in the first place. That distinction matters, because appraisal is generally not the right tool for a dispute about whether a claim is covered at all.
Check who can invoke the process. Many policies allow either the policyholder or the insurer to demand appraisal, though the exact wording and any notice requirements can vary.
Look for language about appraiser qualifications, often phrased as “competent and disinterested,” and for any specific process described for selecting an umpire, including what happens if the two appraisers cannot agree on one.
Pay attention to any provisions about who pays for what. Many clauses state that each side pays its own appraiser, while umpire fees and other shared appraisal expenses are typically split evenly, though this can vary.
Finally, note any deadlines or procedural steps mentioned, such as time limits for demanding appraisal after a disagreement arises. Missing a stated deadline could affect a policyholder’s ability to use the process later.
This article is general education about how the appraisal process commonly works. It is not legal advice, and specific procedures can vary by state and policy. If you are considering appraisal for your own claim, review your policy language and talk with your insurance company, agent, or an attorney familiar with your state’s laws.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.