A common question about the appraisal process is whether reaching an award closes the door on any further legal action. The answer generally depends on what the underlying disagreement actually involved.
An appraisal award typically resolves the specific dollar amount of a covered loss. Once properly reached, this figure is generally treated as binding on that specific issue in many states and under many policy forms.
However, appraisal generally does not resolve broader legal questions, such as coverage disputes or allegations of bad faith, that may exist separately from the amount of the loss itself. These issues can potentially still be pursued through other legal avenues if they were not part of what the appraisal addressed.
There are also limited circumstances in which an appraisal award itself might be challenged, such as claims of fraud, corruption, or significant procedural irregularities, though these grounds tend to be narrow and vary by state.
Because the interplay between an appraisal award and any remaining legal options can be complex and varies by jurisdiction, anyone with questions about their specific situation should consult with an attorney familiar with their state’s 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.