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When an appraisal award later becomes relevant in litigation, whether because a coverage dispute proceeds separately or because one party challenges the award itself, attorneys often need to understand what documentation the appraisal process actually generated and how much of it is likely to be discoverable. This question does not have a single uniform answer, since it depends heavily on state law, the specific policy language, and how the appraisal was conducted, but some general patterns are worth understanding.
An appraisal file typically includes the written demand invoking appraisal, correspondence identifying the party-appraisers and later the umpire, inspection reports, photographs, measurement data, competing estimates, and any written communications exchanged between the appraisers and the umpire during the process. It also includes the final award itself, along with any dissent or explanatory notes a panel member chooses to attach. Much of this material is factual and documentary in nature, similar to records generated in ordinary claims handling, and is generally treated as discoverable in litigation touching on the same loss. Time and expense records the appraisers and umpire generate for billing purposes are sometimes requested as well, particularly if a party later questions the reasonableness of the panel’s fees or the amount of time spent on a given task.
The more contested territory involves communications between a party and its own appraiser, and between the panel members during deliberation. Some jurisdictions extend a degree of protection to communications between a party and its retained appraiser that resembles, though does not always match, the protection given to communications with a retained expert, particularly where the appraiser was engaged in anticipation of the appraisal proceeding. Deliberative communications among the panel members, especially informal exchanges between the umpire and the two appraisers while working toward an award, are sometimes treated similarly to arbitration deliberations, which many jurisdictions shield from discovery to protect the integrity of the decision-making process. Because the case law on this specific point varies considerably from one state to the next, and sometimes has not been squarely addressed at all, attorneys handling a matter where this question could become important are generally well served by researching the applicable jurisdiction’s treatment of appraisal communications early, rather than assuming the protections that apply to arbitration or expert discovery automatically transfer to the appraisal context.
Attorneys handling a matter that may eventually touch on discovery of the appraisal file should treat documentation practices seriously from the outset, rather than trying to sort out privilege questions after the fact. This means being deliberate about what is put in writing to the appraiser, understanding that estimates, inspection notes, and photographs exchanged during the process will very likely be produced if requested, and advising clients that appraisal, while less formal than litigation, still generates a documentary record that can resurface later.
Because appraisal is meant to be an efficient, largely self-contained process, attorneys generally avoid turning it into a parallel discovery battle by serving subpoenas or formal document requests on the appraisers themselves absent a specific, well-founded reason, such as a genuine question about an appraiser’s independence or a suspected departure from the panel’s proper scope. Absent those circumstances, the more productive approach is usually to let the appraisal file develop naturally through the process and address any discovery questions if and when the award actually becomes the subject of litigation.
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.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Contact Appraisal Resolution.