The appraisal process raises a lot of common questions for people going through it for the first time. Here are general answers to a few of the questions that come up most often.
What is appraisal? Appraisal is generally a process built into many property insurance policies for resolving a disagreement over the dollar amount of a covered loss, using two appraisers and, if needed, a neutral umpire.
Who can invoke appraisal? In many policies, either the policyholder or the insurance company can invoke appraisal when the two sides disagree on the value of a claim.
How long does appraisal take? Timelines vary significantly based on claim complexity, but many appraisals are resolved in a matter of weeks to a few months, generally faster than litigation.
Is an appraisal award final? In many states and under many policy forms, an appraisal award is treated as binding on the dollar amount of the loss once properly reached, though narrow grounds for challenging an award can exist in limited circumstances.
Because specific answers can vary based on your policy and your state, these general answers are a starting point, not a substitute for reviewing your own policy or speaking with your insurance company or an attorney about your specific situation.
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 have questions about 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.