What Happens if One Side Refuses to Participate in Appraisal

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Because appraisal clauses generally give both the policyholder and the insurer the right to invoke the process, occasionally one side may be reluctant to participate once the other side has made a demand. Understanding what typically happens in this situation can be helpful.

If a party fails to select its own appraiser within a reasonable time after a valid demand for appraisal, many policies and many states provide mechanisms to address this, such as allowing the other side to request a court to appoint an appraiser on the non participating party’s behalf.

Some policies include specific language addressing what happens if one side does not comply with the appraisal process, including potential consequences that can vary depending on the policy and applicable state law.

Refusing to participate in a process that the policy provides for can carry its own risks and legal implications, which can vary significantly depending on the specific circumstances and the state involved.

When one side is not cooperating with a valid appraisal demand, either party can review the policy language closely and, if questions remain, consult a professional familiar with that state’s laws to understand the specific options available.

This is general educational material on the appraisal process rather than legal advice, and the specifics can vary with each state and policy. If you have questions about your own claim, review your policy language and talk with the insurance company, agent, or an attorney familiar with your state’s laws.

Based in Minnesota and serving clients nationwide, Russ Lis is a working property insurance appraiser and umpire. Have a question about your own claim? Contact Appraisal Resolution.