Cost is often one of the first questions people have when they are deciding whether to invoke appraisal. While exact figures vary widely depending on the appraiser, the complexity of the claim, and the region, understanding the general categories of cost can help with planning.
Each side is typically responsible for paying its own appraiser. Appraiser fees can be structured in different ways, such as an hourly rate, a flat fee, or a percentage of the claim amount, depending on the appraiser and what the policy or state allows.
The umpire’s fee is generally treated as a shared cost, often split evenly between the policyholder and the insurance company, though the specific policy language controls how this is actually handled.
There can also be additional costs depending on the complexity of the claim, such as fees for contractors, estimators, or engineers brought in to help document or evaluate specific aspects of the damage.
It is worth weighing these costs against the potential benefit of resolving a genuine, significant dollar disagreement through a structured process rather than through prolonged negotiation or litigation, which often carries its own, sometimes much larger, costs.
Because appraiser fee structures and umpire cost sharing arrangements can vary, it is a good idea to ask any appraiser under consideration for a clear, written explanation of their fees before moving forward.
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 are considering appraisal for 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.