While the basic concept of appraisal, using two appraisers and a neutral umpire to resolve a disputed dollar amount, is fairly consistent across the country, the specific procedures and rules involved can vary meaningfully from state to state.
Some states have statutes that specifically address property insurance appraisal, setting requirements around topics like appraiser qualifications, umpire selection, or timelines, while other states rely more heavily on the specific policy language and general contract law principles.
The grounds for challenging an appraisal award, and how courts in a given state have historically treated the appraisal process, can also differ, affecting how enforceable a particular award may be.
Even the basic mechanics, such as how umpires are appointed when appraisers cannot agree, or how costs are allocated between the parties, can be shaped by state specific rules in addition to the language of the policy itself.
Because of this variation, anyone with specific questions about how appraisal works in their state should review their policy carefully and consider speaking with an attorney familiar with their state’s insurance laws.
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.