Appraisal and mediation are both processes used to help resolve property insurance disputes outside of court, but they work quite differently, and understanding the distinction can help clarify which might apply to a given situation.
Appraisal is generally a structured process specifically for resolving disagreements over the dollar amount of a covered loss, using two appraisers and, if needed, a neutral umpire to reach a binding figure.
Mediation, by contrast, generally involves a neutral mediator who helps facilitate a negotiated agreement between the parties, but the mediator typically does not have authority to impose a decision. Both sides must voluntarily agree to any resolution reached.
Mediation can potentially address a broader range of issues beyond just the dollar amount of a loss, including coverage questions, while appraisal is generally limited specifically to valuing the disputed loss itself.
Because these processes differ in both scope and outcome, whether appraisal, mediation, or another option is appropriate for a specific dispute is a decision best discussed with your insurance company or an attorney familiar with your policy and your state’s rules.
This article is general education, not legal advice, and rules can vary significantly by state and by policy. If you have questions about your own claim or your legal options, 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.