Property insurance claims generally fall into two broad categories, partial losses and total losses, and the appraisal process can look somewhat different depending on which type of loss is involved.
A partial loss involves damage to only part of a structure, such as a damaged roof or a single damaged room, while the rest of the property remains largely intact. Appraisal in these cases typically focuses on the specific disputed scope and cost of repairing the damaged portion.
A total loss, where the property is damaged beyond reasonable repair, generally shifts the focus to determining the value of the property itself, often based on replacement cost or actual cash value, depending on the specific policy language.
Partial loss appraisals often involve more detailed, line item review of specific repair categories, while total loss appraisals may focus more heavily on overall property valuation methods and applicable policy limits.
In both cases, the appraisal process follows the same basic structure, with appraisers and, if needed, an umpire working to resolve the disputed dollar amount, but the specific analysis involved can differ significantly based on the type and scale of the loss.
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.